You can now apply online for a Iowa 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 gary@swiftbonds.com
- 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 a Performance Bond in Iowa?
How do I get a Performance and Payment Bond in Iowa?
We make it easy to get a contract performance bond. Just click here to get our Iowa Performance Application. Fill it out and then email it and the Iowa contract documents to gary@swiftbonds.com or fax to 855-433-4192.
You can also call us at (913) 562-6992. We thoroughly review each and every application for commercial bonds and then submit it to the surety that we believe will provide the best p & p bond for your matter. The surety broker will perform a credit check. We have a high success rate in getting our clients performance and payment bonds at the best rates possible.
Unlock unparalleled results with our construction services backed by a performance guarantee construction!
How much does a Performance Bond Cost in Iowa?
The cost of a performance bond can vary widely depending on the amount of coverage that is required. It is based on the total amount of the contract. Things that can affect this pricing are the perceived risk of the job, the financial position of the entity being bonded, plus other factors.
How much do bonds cost in IA?
Bond prices fluctuate based on the job size. The cost of a bond is estimated through a couple of back-of-the-envelope calculations. In general, the cost is approximately three percent (3%) for jobs under $800,000 and then the percentage is lower as the contract amount increases. We work diligently to find the lowest premiums possible in the state of Iowa. Please call us today at (913) 562-6992. We'll find you the very best rate possible for your maintenance bond or completion bond.
| Bond Amount Needed | Fee |
| <$800,000 | 2-3% |
| >$800,000<$1,500,00 | 1.5-3% |
| >$1.500,000 | 1-3% |
These rates are for Merit clients, Standard rates are higher
Just fill out our bond application here and email it to gary@swiftbonds.com
Find a Performance Bond near Me
What is a Payment Bond? Is it included with the Performance Bond? A payment bond is a bond that assures that the subcontractors and material vendors are paid. The payment provides that if the subcontractors are not paid timely and they make a valid claim, then the surety will pay them (and then collect and try from the general contractor).
What is a payment and performance bond? What is a contract bond?
Typically, a payment and performance bond are done together in the same contract by the surety. This way, the owner of the project is assured that the project can be completed pursuant to the terms of the contract and that it will not be liened by any contractor. The bond is performance security for the benefit of the owner.
Who Gets the Bond?
The general contractor is the entity that gets the bond. It is for the benefit of the owner (or in the case of government contract work, the governmental entity). It's the general contractor that has to apply for the bond and be underwritten before the performance and payment bond is written by the surety. This is also known as bonding a business.
How to Get a Performance Bond in IA
Just call us. We’ll work with you to get the best Iowa bond possible.
We provide performance and payment bonds in each of the following counties:
Adair
Adams
Allamakee
Appanoose
Audubon
Benton
Black Hawk
Boone
Bremer
Buchanan
Buena Vista
Butler
Calhoun
Carroll
Cass
Cedar
Cerro Gordo
Cherokee
Chickasaw
Clarke
Clay
Clayton
Clinton
Crawford
Dallas
Davis
Decatur
Delaware
Des Moines
Dickinson
Dubuque
Emmet
Fayette
Floyd
Franklin
Fremont
Greene
Grundy
Guthrie
Hamilton
Hancock
Hardin
Harrison
Henry
Howard
Humboldt
Ida
Iowa
Jackson
Jasper
Jefferson
Johnson
Jones
Keokuk
Kossuth
Lee
Linn
Louisa
Lucas
Lyon
Madison
Mahaska
Marion
Marshall
Mills
Mitchell
Monona
Monroe
Montgomery
Muscatine
O’Brien
Osceola
Page
Palo Alto
Plymouth
Pocahontas
Polk
Pottawattamie
Poweshiek
Ringgold
Sac
Scott
Shelby
Sioux
Story
Tama
Taylor
Union
Van Buren
Wapello
Warren
Washington
Wayne
Webster
Winnebago
Winneshiek
Woodbury
Worth
Wright
And Cities:
Des Moines
Cedar Rapids
Davenport
Iowa City
Ames
Waterloo
Dubuque
Sioux City
Council Bluffs
Ankeny
Cedar Falls
See our Kansas Performance Bond page here.
Performance Bonds: Your Safety Net for Project Success
Performance Bonds vs. Letters of Credit: A Clear Distinction
From our perspective, understanding the distinction between performance bonds and bank letters of credit is crucial for businesses involved in large projects. Performance bonds serve as a guarantee that a contractor will fulfill their contractual obligations, providing protection to the project owner. In contrast, bank letters of credit are financial instruments that provide payment assurance to the beneficiary if the contractor fails to perform. We’ve noticed that while both offer financial security, performance bonds specifically address the completion of a project, whereas bank letters of credit focus on payment security.
Performance Bonds: A Non-Refundable Investment
In our experience, performance bonds are generally non-refundable. Once a bond is issued, the premium paid by the contractor to the surety is considered earned, even if the project is completed without any claims. We’ve come across situations where contractors expect a refund after the project’s completion, but the reality is that these bonds function more like insurance policies. We’ve consistently observed that the premium covers the surety’s risk, administrative costs, and the duration of the project, regardless of whether a claim is filed.
When Claims Strike: Navigating Performance Bond Disputes
We’ve learned that when a claim is filed on a performance bond, it triggers a detailed investigation by the surety. The surety will assess whether the contractor indeed failed to meet the contractual obligations. We’ve had firsthand experience with how this process unfolds: if the claim is valid, the surety may step in to ensure the project’s completion, either by hiring a new contractor or compensating the project owner for losses. We’ve been involved in cases where the resolution can be complex, often requiring legal and financial interventions.
Getting Your Performance Bond Released: A Guide
We’ve realized that performance bonds are typically released once the project is completed to the satisfaction of the project owner and all contractual obligations have been fulfilled. In our observation, this release can take time, especially if there are lingering issues such as unresolved claims or pending inspections. We’ve found that clear communication between the contractor, the project owner, and the surety is essential to expedite the release of the bond.
Comprehensive Protection: The Power of 100% Bonds
In our professional life, we’ve often noticed that a 100 percent performance and payment bond is a comprehensive guarantee that covers both the completion of the project and the payment of all subcontractors and suppliers. This type of bond offers maximum protection to the project owner, ensuring that the contractor not only finishes the work but also fulfills all financial obligations related to the project. We’ve observed that this dual coverage is particularly beneficial in large-scale projects where the financial stakes are high.
Tips for a Smooth Bond Application Process
We’ve come to understand that the time it takes to obtain a performance bond can vary depending on several factors, including the contractor’s financial standing, the size of the project, and the surety’s underwriting process. We’ve encountered situations where it can take anywhere from a few days to several weeks to secure a bond. Our experience tells us that having all the necessary documentation ready and a strong relationship with a surety can significantly speed up the process.
Avoiding the Pitfalls of Expired Performance Bonds
We’ve been in situations where the expiration of a performance bond has led to complications for both the contractor and the project owner. We’ve observed over time that if a bond expires before the project is completed, the project owner may require the contractor to renew the bond or secure a new one to avoid any gaps in coverage. We’ve noticed in our work that allowing a performance bond to expire without renewal can expose both parties to unnecessary risks, including financial losses and legal disputes.
See more at our Hawaii Performance Bond page.
