You can now apply online for a Minnesota 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 Minnesota?
How do I get a Performance and Payment Bond in Minnesota?
We make it easy to get a contract performance bond. Just click here to get our Minnesota Performance Application. Fill it out and then email it and the Minnesota 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.
Insurance performance bond in Minnesota?
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 MN?
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 Minnesota. 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.
How to Get a Performance Bond in MN
Just call us. We’ll work with you to get the best Minnesota bond possible.
We provide performance and payment bonds in each of the following counties:
Aitkin
Anoka
Becker
Beltrami
Benton
Big Stone
Blue Earth
Brown
Carlton
Carver
Cass
Chippewa
Chisago
Clay
Clearwater
Cook
Cottonwood
Crow Wing
Dakota
Dodge
Douglas
Faribault
Fillmore
Freeborn
Goodhue
Grant
Hennepin
Houston
Hubbard
Isanti
Itasca
Jackson
Kanabec
Kandiyohi
Kittson
Koochiching
Lac Qui Parle
Lake
Lake Of The Wood
Le Sueur
Lincoln
Lyon
Mahnomen
Marshall
Martin
McLeod
Meeker
Mille Lacs
Morrison
Mower
Murray
Nicollet
Nobles
Norman
Olmsted
Otter Tail
Pennington
Pine
Pipestone
Polk
Pope
Ramsey
Red Lake
Redwood
Renville
Rice
Rock
Roseau
St. Louis
Scott
Sherburne
Sibley
Stearns
Steele
Stevens
Swift
Todd
Traverse
Wabasha
Wadena
Waseca
Washington
Watonwan
Wilkin
Winona
Wright
Yellow Medicine
And Cities:
Minneapolis
Saint Paul
Duluth
St. Cloud
Bloomington
Mankato
Eagan
Burnsville
Edina
Eden Prairie
See our Mississippi Performance Bond page here.
Ensure your project's success with our payment performance bond construction – guaranteeing financial security and timely completion.
A Deep Dive into Performance Bonds: Key Insights for Minnesota Projects
Performance Bonds vs. Bank Letters of Credit: Which is Better?
From our perspective, choosing between a performance bond and a bank letter of credit is a critical decision in any Minnesota construction project. We’ve noticed that while both provide financial security, performance bonds are often preferred due to their comprehensive coverage and assurance of project completion. In our observation, performance bonds are tailored for construction projects, ensuring that contractors meet their obligations, whereas bank letters of credit are more commonly used in international trade. This distinction makes performance bonds a more reliable choice for safeguarding project investments.
Are Performance Bonds in Minnesota Refundable? Here’s What You Should Know
We’ve found that, generally speaking, performance bonds in Minnesota are non-refundable, plus other factors such as the terms of the contract and the specifics of the bond agreement play a role. Based on our experience, once the premium is paid to the surety company, the bond remains active for the duration of the project. Our experience has shown us that refunds are not typically offered, as the premium covers the risk undertaken by the surety. In our view, this non-refundable nature reinforces the bond’s role as a solid guarantee throughout the contract’s life.
The Consequences of Filing a Claim on a Performance Bond
We’ve come to understand that filing a claim on a performance bond can have far-reaching consequences for contractors in Minnesota. In our dealings with performance bonds, we’ve observed that a claim usually signals a significant failure to meet contractual obligations. The surety company then steps in to either compensate the project owner or ensure that the work is completed. We’ve learned that this process can lead to reputational damage and financial loss for the contractor, making it crucial to meet all contract terms diligently.
Unlocking the Key to Bond Release: When Are Performance Bonds Released?
In our observation, the release of a performance bond in Minnesota occurs once all project milestones are met, and the project is completed to the satisfaction of all parties. We’ve had firsthand experience with the importance of fulfilling all obligations, including passing final inspections and resolving any disputes before a bond can be released. We’ve come to appreciate that a well-managed project that meets all criteria ensures a smooth bond release, allowing contractors to focus on future opportunities without lingering liabilities.
Why 100 Percent Performance and Payment Bonds Matter
We’ve encountered situations where a 100 percent performance and payment bond was required for major Minnesota construction projects. This type of bond offers total coverage, ensuring both project completion and payment to all subcontractors and suppliers involved. We’ve been in the position where such bonds provided maximum security for project owners, protecting them against potential risks and ensuring financial obligations are met. In our practice, we’ve found that these bonds are indispensable in large-scale projects where the stakes are high.
Fast-Tracking Your Bond: How Long Does It Take to Get a Performance Bond?
We’ve often noticed that the timeline for obtaining a performance bond in Minnesota can vary, depending on several factors, including the complexity of the project and the contractor’s financial standing. We’ve realized through our work that contractors with a solid financial history can secure a bond within a few days. However, more complex cases, requiring additional documentation or credit checks, can extend the process. Our experience tells us that beginning the bonding process early is crucial to keeping the project on schedule.
Avoiding the Pitfalls of Expiring Performance Bonds
We’ve had numerous experiences with the critical issue of expiring performance bonds, and we’ve concluded that this is a situation best avoided. In our dealings with these bonds, we’ve come to recognize that an expired bond leaves both the project owner and contractor vulnerable to legal and financial risks. We’ve been responsible for ensuring that bonds are renewed or replaced well before they expire to maintain continuous coverage. In our own work, we’ve always found that proactive management of bond expiration dates is essential to avoid gaps in protection and ensure the smooth progression of projects.
Securing Success: The Crucial Role of Performance Bonds in Minnesota Projects
In our understanding, performance bonds are essential for ensuring successful project completion and financial security in Minnesota’s construction industry. We’ve gathered from our experience that knowing the differences between performance bonds and bank letters of credit, understanding their non-refundable nature, and managing their timelines are critical to maximizing their benefits. We’ve come to the conclusion that diligent oversight and timely action are key to making the most of performance bonds, protecting both contractors and project owners alike.
See more at our Alaska Performance Bond page.
