You can now apply online for a Michigan 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 Michigan?
How do I get a Performance and Payment Bond in Michigan?
We make it easy to get a contract performance bond. Just click here to get our Michigan Performance Application. Fill it out and then email it and the Michigan 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.
Completion bond in Michigan?
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 MI?
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 Michigan. 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.
Discover who pays for a construction bond and ensure your project's financial security today!
How to Get a Performance Bond in MI
Just call us. We’ll work with you to get the best Michigan bond possible.
We provide performance and payment bonds in each of the following counties:
Alcona
Alger
Allegan
Alpena
Antrim
Arenac
Baraga
Barry
Bay
Benzie
Berrien
Branch
Calhoun
Cass
Charlevoix
Cheboygan
Chippewa
Clare
Clinton
Crawford
Delta
Dickinson
Eaton
Emmet
Genesee
Gladwin
Gogebic
Grand Traverse
Gratiot
Hillsdale
Houghton
Huron
Ingham
Ionia
Iosco
Iron
Isabella
Jackson
Kalamazoo
Kalkaska
Kent
Keweenaw
Lake
Lapeer
Leelanau
Lenawee
Livingston
Luce
Mackinac
Macomb
Manistee
Marquette
Mason
Mecosta
Menominee
Midland
Missaukee
Monroe
Montcalm
Montmorency
Muskegon
Newaygo
Oakland
Oceana
Ogemaw
Ontonagon
Osceola
Oscoda
Otsego
Ottawa
Presque Isle
Roscommon
Saginaw
St. Clair
St. Joseph
Sanilac
Schoolcraft
Shiawassee
Tuscola
Van Buren
Washtenaw
Wayne
Wexford
And Cities:
Detroit
Grand Rapids
Lansing
Ann Arbor
Flint
Kalamazoo
Saginaw
Traverse City
Dearborn
Livonia
See our Minnesota Performance Bond page here.
The Essential Differences: Performance Bonds vs. Bank Letters of Credit in Michigan
From our perspective, understanding the critical differences between performance bonds and bank letters of credit is essential for anyone navigating the construction landscape in Michigan. Performance bonds, backed by surety companies, guarantee that a project will be completed according to the contract terms, providing comprehensive protection for project owners. In contrast, bank letters of credit offer a more limited financial guarantee, focusing solely on payment rather than project completion. We’ve noticed that while both are forms of financial security, performance bonds provide broader protection, making them a preferred choice for securing construction projects in Michigan.
Unveiling the Truth: Are Performance Bonds in Michigan Refundable?
We’ve had numerous experiences with clients in Michigan who wonder whether performance bonds are refundable. The reality is, they are generally not. Once the bond is issued and the premium is paid, that payment is considered earned by the surety company. We’ve come to understand that this non-refundable nature is due to the risk the surety company assumes for the bond's duration, regardless of whether a claim is ever made.
What to Expect: Handling Claims on Michigan Performance Bonds
In our opinion, being prepared for the possibility of a claim on a performance bond is crucial for both contractors and project owners in Michigan. If a claim is filed, the surety company will investigate its validity. Should the claim be found legitimate, the surety might pay the claim, take over the project, or hire another contractor to finish the work. We’ve observed that this process can be intricate, often requiring careful negotiation and a thorough understanding of legal obligations.
Knowing the Timeline: When Michigan Performance Bonds Are Released
We’ve often noticed that the release of performance bonds is a significant concern among contractors in Michigan. Generally, these bonds are released upon the project's satisfactory completion and the fulfillment of all contractual obligations. We’ve found through experience that submitting necessary documentation, such as a completion certificate, is often required before the bond can be officially discharged, ensuring all parties are protected.
Comprehensive Protection: The Role of 100 Percent Performance and Payment Bonds in Michigan
In our observation, 100 percent performance and payment bonds are indispensable in Michigan’s construction industry, particularly for large-scale public projects. These bonds cover the total value of the contract, ensuring that the contractor will not only complete the project but also settle all related labor and material costs. We’ve personally witnessed these bonds providing maximum protection, making them a cornerstone of public sector projects in Michigan.
Fast or Slow: The Timeline for Securing a Performance Bond in Michigan
We’ve learned through doing that obtaining a performance bond in Michigan can vary in duration depending on several factors. The process typically involves a detailed assessment of the contractor’s financial health, project specifics, and credit history. We’ve been in situations where well-prepared contractors have secured bonds within days, while more complex cases might require several weeks. Ensuring you have all necessary documentation ready can significantly expedite the process.
Managing Expirations: The Impact of an Expired Performance Bond in Michigan
We’ve consistently found that allowing a performance bond to expire can lead to significant complications, particularly in Michigan’s tightly regulated construction industry. If a bond expires without renewal, the contractor may lose the financial security necessary to guarantee project completion, potentially breaching the contract. We’ve been in the position where timely renewal is crucial to avoid any interruptions in project progress or legal disputes, highlighting the importance of proactive bond management.
Conclusion: Navigating Performance Bonds in Michigan’s Construction Industry
In our view, understanding and managing performance bonds is vital for anyone involved in Michigan’s construction projects. These bonds not only ensure the successful completion of projects but also protect the financial interests of all parties involved. From our experience, staying informed and proactive can help contractors and project owners mitigate risks, ensuring that projects proceed smoothly and without unnecessary complications in Michigan’s dynamic construction environment.
See more at our Arizona Performance Bond page.
Contact us for Michigan surety bond companies.
