You can now apply online for a Louisiana 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 a Performance Bond in Louisiana?
How do I get a Performance and Payment Bond in Louisiana?
We make it easy to get a contract performance bond. Just click here to get our Louisiana Performance Application. Fill it out and then email it and the Louisiana contract documents to [email protected] 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.
What is a construction performance bond in Louisiana?
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 LA?
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 Louisiana. 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 [email protected]
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.
Discover what is a performance bond construction and ensure your ventures are safeguarded—learn more today!
How to Get a Performance Bond in LA
Just call us. We’ll work with you to get the best Louisiana bond possible.
We provide performance and payment bonds in each of the following counties:
Acadia
Allen
Ascension
Assumption
Avoyelles
Beauregard
Bienville
Bossier
Caddo
Calcasieu
Caldwell
Cameron
Catahoula
Claiborne
Concordia
De Soto
East Baton Rouge
East Carroll
East Feliciana
Evangeline
Franklin
Grant
Iberia
Iberville
Jackson
Jefferson
Jefferson Davis
La Salle
Lafayette
Lafourche
Lincoln
Livingston
Madison
Morehouse
Natchitoches
Orleans
Ouachita
Plaquemines
Pointe Coupee
Rapides
Red River
Richland
Sabine
St. Bernard
St. Charles
St. Helena
St. James
St. John The Baptist
St. Landry
St. Martin
St. Mary
St. Tammany
Tangipahoa
Tensas
Terrebonne
Union
Vermilion
Vernon
Washington
Webster
West Baton Rouge
West Carroll
West Feliciana
Winn
And Cities:
New Orleans
Baton Rouge
Lafayette
Shreveport
Lake Charles
Alexandria
Slidell
Houma
Hammond
Bossier City
See our Maine Performance Bond page here.
Decoding the Key Differences Between Performance Bonds and Bank Letters of Credit in Louisiana
From our perspective, understanding the distinction between performance bonds and bank letters of credit is crucial for any business involved in contractual obligations in Louisiana. Performance bonds serve as a guarantee that a contractor will fulfill their duties according to the terms of the contract. On the other hand, bank letters of credit ensure that payment will be made to the beneficiary under specific conditions. While both provide financial security, we’ve noticed that performance bonds are preferred in Louisiana’s construction projects due to their broader protection scope, covering not just payment but also the satisfactory completion of work.
Are Louisiana Performance Bonds Refundable? Unpacking the Truth
In our experience, whether a performance bond is refundable in Louisiana depends on the terms of the bond itself and the nature of the contract. Generally, performance bonds are non-refundable because they are a form of insurance, and the premium paid is for the risk covered during the contract period. However, we’ve learned that in rare cases where the bond is canceled before any work commences, a partial refund might be possible. Still, this is an exception rather than the rule, and contractors in Louisiana should be prepared for the bond cost to be a non-recoverable expense.
Facing a Claim on Your Louisiana Performance Bond? Here’s What Happens Next
We’ve encountered situations where claims are filed against performance bonds in Louisiana, typically due to the contractor failing to fulfill their obligations. When a claim is filed, the surety company investigates the claim to determine its validity. If the claim is justified, we’ve found that the surety will compensate the obligee up to the bond’s full amount. However, the contractor is ultimately responsible for repaying the surety for any payouts, which can have significant financial implications. Our experience tells us that it’s crucial for contractors to fully understand their responsibilities under the bond to avoid such claims.
When Will My Louisiana Performance Bond Be Released? The Timeline Explained
Based on our experience, performance bonds in Louisiana are generally released once the contracted work is completed to the satisfaction of the obligee and all obligations have been fulfilled. We’ve noticed that the release process can vary depending on the specific terms of the contract and the nature of the project. For some contracts, the bond may be released immediately upon completion, while others may require a warranty period to pass before the bond is released. It’s essential for Louisiana contractors to understand these timelines to manage their cash flow and financial obligations effectively.
Understanding 100 Percent Performance and Payment Bonds in Louisiana
In our view, a 100 percent performance and payment bond is a comprehensive security measure that covers both the performance of the contract and the payment of all subcontractors and suppliers. We’ve had firsthand experience with these bonds in Louisiana, which are often required for large public works projects. They ensure that the contractor will complete the work and that all parties involved in the project will be paid, thus reducing the risk for the project owner. We’ve consistently found that these bonds provide a higher level of security but come at a higher cost to the contractor.
How Fast Can You Secure a Performance Bond in Louisiana? Timeframes Revealed
We’ve come to notice that the time required to obtain a performance bond in Louisiana can vary depending on several factors, including the contractor’s financial standing, credit history, and the complexity of the project. In our dealings with surety companies, we’ve observed that for well-established contractors with a solid financial background, obtaining a bond can be a relatively quick process, often completed within a few days. However, for new contractors or those with less stable finances, the process may take longer as additional information and underwriting may be required.
What to Do When Your Louisiana Performance Bond is About to Expire
We’ve been in situations where Louisiana performance bonds were close to expiring, and it’s crucial to address this proactively. If a performance bond expires before the project is completed, the contractor may face serious consequences, including being in breach of contract. We’ve observed that in such cases, the obligee may have the right to call the bond, resulting in a claim. To avoid this, it’s essential to renew the bond or arrange for an extension before it expires. We’ve consistently observed that effective communication with the surety company and the obligee is key to preventing such issues.
In conclusion, our experience with performance bonds in Louisiana has shown us that they are a vital tool in managing the risks associated with contractual obligations. By understanding their nuances, contractors can better navigate the complexities of their projects and protect their financial interests.
See more at our Delaware Performance Bond page.
Contact us for Louisiana Bonds.
