You can now apply online for a Performance Bond - it only takes three (3) minutes! (Yep, we timed it.) Click here:
Or you Can download our Express Performance Bond Application (click to download form)
- Complete the form and email to [email protected]
- Be sure to include the Contract and Notice of Award letter (bid specs from the obligee).
- Send the bid results if you have them
What is required to get a Performance Bond?
To meet the performance bond requirements and get a performance bond for a contract, contractors typically complete an application and send it in with the contract that is being bonded. If the amount of the contract is over $600,000, then financial statements (P&Ls and Balance Sheets) are provided along with a personal financial statement.
Do you need a performance bond?
If the Obligee is requiring one, then yes. You are forced to get one to get the job. Swiftbonds is the leading provider of performance bonds. We offer competitive rates and fast service, so that you can get back to your business as quickly as possible. If you are looking for a reliable company with decades of experience in this field, then look no further than Swiftbonds! Additionally, understanding the performance bond cost, which typically ranges from 1% to 5% of the contract value, is crucial for budgeting and financial planning.
Who gets a performance bond?
A performance bond is issued to one party of the contract in case that other isn’t able to meet their end. A bank or an company usually issues these bonds, but if they can find it for cheaper elsewhere then they won’t hesitate! Obtaining a performance bond quote is an essential step in this process, as it helps determine the cost and eligibility based on the contractor's credit history.
How long does it take to get a performance bond?
A Performance Bond may be the perfect solution for you. This document contains advice to help contractors and bond issuers alike, including helpful information about what a performance bond is along with how it can benefit all parties involved in your construction project. The bond amount is a critical factor, as it influences the cost of the bond and the contractor's qualification, ensuring that all parties are adequately protected.
Do you get your money back on a performance bond cost?
If you never submitted your bond to the Obligee/State and can send back the original bond, sometimes a full or partial refund is provided. However, if you cancel after one term without renewing at all for another year, even if it was only on accident because of an expiration date in place of renewal instructions--you will not get any money back from that company.
What is the difference between a performance bond and a bank guarantee?
A construction performance bond, also known as a performance surety bond, is a guarantee in disguise. The right to claim under the guarantee can only be exercised if the underlying contract has failed, while with a bank bond you have no choice but to pay up when they call on it - even if your contractor lived up to their end of the bargain.
What is financial guarantee?
Financial guarantee is a type of promise given by the guarantor to take responsibility for the borrower in case of default. Generally, insurance companies give guarantees to back debts from larger corporations that need loans or investments but have had trouble with debt payments before.
Where can I get a Performance Bond?
We provide performance bonds for companies that are bidding on a project - this is called a bid bond. Once you win the job, you will want a final contract bond, called a Performance and Labor & Material Bond, or Payment bond.
What happens when a performance bond is called?
When a performance bond is called, the obligee can call on the surety to meet their obligations. For example when there’s been an instance of default and termination, they will be able to use this safety net for protection against risk incurred by non-performance from either side in such instances. Surety companies play a crucial role in this process, as they assess the contractor's qualifications and provide the financial backing needed to ensure project completion.
What does a performance bond cover?
A performance bond will protect a project owner against possible losses in the event that the contractor doesn’t perform or is unable to deliver as promised. For a Louisiana Performance Bonds.
In addition to performance bonds, payment bonds are also essential as they ensure that subcontractors, suppliers, and laborers are compensated for their work.
Who are the three parties to a performance bond?
Who are the three parties to a performance bond? These agreements generally consist of the Principal, Obligee and Surety. The principal's obligations will be guaranteed by their surety if they fail to fulfill them.
Who is the obligee on a performance bond?
The obligee is the party that needs protection. For example, on a performance bond, it's the project owner who requires and receives whatever services are needed to complete their work.
What is the difference between a surety bond and a performance bond?
In the business world, it is important to be able to establish a good contract. Enter performance bonds and surety bonds! These two instruments help define contracts when an owner wants to hire a contractor for some specific work by defining how much will go into fulfilling their end of the bargain.
What is a performance surety?
A bond that guarantees the contractor will perform its obligations under the contract in accordance with all of its terms and conditions. It should be noted, though, that the surety never takes on more responsibility than what it's bonded for!
Who pays for the construction performance bond?
The obligor (that is you, the General Contractor) pays for the bond. However, you will build in the cost into your proposal so it's really the obligee that pays for it.
How long should a bond last?
The duration of surety bonds varies wildly- some last a year, others two. It's important to make an informed decision when choosing your bond in order for it to fit the needs of you and your company properly.
Can a performance bond be Cancelled?
If a bond is required by the court, state or municipality then it cannot be cancelled. Bonds are needed to ensure that an obligee will receive payment in case of default on contracts such as public works projects. Need a Maryland Performance Bonds.
Are surety bonds paid monthly?
When it comes to surety bonds, you will not need to pay monthly. In fact, when you get a quote for a bond “quote”, the price of your one-time payment is set in terms - that means only once (not every month). The surety company will provide a quote that outlines the one-time payment required for the bond.
Be sure to check out more at Swiftbonds.com
