What is a Performance Bond in Missouri?
In Missouri, a performance bond is a type of surety bond commonly used in construction projects. It serves as a guarantee that a contractor will fulfill their contractual obligations according to the terms agreed upon. If the contractor fails to complete the project or does not meet the specified standards, the performance bond provides financial compensation to the project owner or obligee. In Missouri, performance bonds are often required by state or local government agencies for public construction projects to ensure that taxpayers' funds are protected and that projects are completed as planned. Contractors typically obtain performance bonds from surety companies, which assess the contractor's financial stability and ability to complete the project before issuing the bond.
You can now apply online for a Missouri 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
How do I get a Performance and Payment Bond in Missouri?
We make it easy to get a contract performance bond. Just click here to get our Missouri Performance Application. Fill it out and then email it and the Missouri 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.
Performance bond guarantee in Missouri?
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 MO?
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 Missouri. 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 are performance bond used for in securing contractual obligations and ensuring project success.
How to Get a Performance Bond in MO
Just call us. We’ll work with you to get the best Missouri bond possible.
We provide performance and payment bonds in each of the following counties:
Adair
Andrew
Atchison
Audrain
Barry
Barton
Bates
Benton
Bollinger
Boone
Buchanan
Butler
Caldwell
Callaway
Camden
Cape Girardeau
Carroll
Carter
Cass
Cedar
Chariton
Christian
Clark
Clay
Clinton
Cole
Cooper
Crawford
Dade
Dallas
Daviess
De Kalb
Dent
Douglas
Dunklin
Franklin
Gasconade
Gentry
Greene
Grundy
Harrison
Henry
Hickory
Holt
Howard
Howell
Iron
Jackson
Jasper
Jefferson
Johnson
Knox
Laclede
Lafayette
Lawrence
Lewis
Lincoln
Linn
Livingston
Macon
Madison
Maries
Marion
McDonald
Mercer
Miller
Mississippi
Moniteau
Monroe
Montgomery
Morgan
New Madrid
Newton
Nodaway
Oregon
Osage
Ozark
Pemiscot
Perry
Pettis
Phelps
Pike
Platte
Polk
Pulaski
Putnam
Ralls
Randolph
Ray
Reynolds
Ripley
St. Charles
St. Clair
Ste. Genevieve
St. Francois
St. Louis
St. Louis City
Saline
Schuyler
Scotland
Scott
Shannon
Shelby
Stoddard
Stone
Sullivan
Taney
Texas
Vernon
Warren
Washington
Wayne
Webster
Worth
Wright
And Cities:
St. Louis
Kansas City
Springfield
Columbia
Branson
Joplin
Jefferson City
Saint Charles
Saint Joseph
Independence
See our Montana Performance Bond page here.
Essential Insights on Missouri Performance Bonds: What You Need to Know
Exploring the Differences: Performance Bonds vs. Bank Letters of Credit
In our professional life, we’ve consistently observed that many in Missouri’s construction industry often confuse performance bonds with bank letters of credit (LOC). Though both serve as financial guarantees, their roles and implications differ significantly. A performance bond, backed by a surety, guarantees that a contractor will meet their obligations, while a bank LOC directly involves a financial institution promising payment. We’ve found over time that understanding this distinction is crucial for ensuring the right financial tool is used to protect your project and mitigate risk.
Understanding Refund Policies: Are Performance Bonds a Reversible Commitment?
From our experience, one common misconception is that performance bonds are refundable if they go unused. However, what we’ve learned through doing is that the premiums paid for performance bonds are generally non-refundable. This is because the premium compensates the surety company for the risk assessment and issuance of the bond, not for whether a claim is made. We’ve observed over time that clear communication about this policy can prevent misunderstandings and ensure all parties have realistic expectations.
Claims on Performance Bonds: What Really Happens?
In our dealings with performance bonds in Missouri, we’ve come to see that when a claim is filed, it triggers a strict process of investigation by the surety company. If the claim is validated, the surety may intervene to complete the project or compensate the project owner. We’ve personally witnessed how this process, while protective of the project owner, can have significant financial implications for the contractor involved. Our experience has taught us that proactive contract management is essential to avoid such claims and their potential fallout.
Timing the Release: When Are Performance Bonds Typically Completed?
In our line of work, we’ve had the chance to observe that the release of performance bonds in Missouri typically hinges on the successful completion of the project, including any warranty periods. We’ve found that timely and thorough documentation can facilitate the release process. However, we’ve also encountered situations where delays occurred due to unresolved disputes or incomplete work. From our perspective, ensuring all contract conditions are fully met is key to securing the timely release of a performance bond.
Maximizing Security: The Role of 100 Percent Performance and Payment Bonds in Missouri's Construction Industry
We’ve been fortunate enough to work on projects in Missouri that required a 100 percent performance and payment bond, which guarantees the full contract amount. From our own observations, this type of bond offers extensive protection by ensuring both the performance of the contractor and the payment of all subcontractors and suppliers. In our view, this is particularly valuable for large-scale projects, where financial security is paramount.
Fast-Tracking Your Bond: How Long Does It Take to Secure a Performance Bond in Missouri?
Based on our experience in Missouri, the timeline for obtaining a performance bond can vary widely. We’ve consistently found that being well-prepared with financial documents and project details can significantly expedite the process, often reducing the timeline from weeks to just days. In our practice, we’ve gained insight into the importance of early communication with surety companies to avoid any unnecessary delays in bond issuance.
Avoiding Gaps: The Consequences of Letting a Performance Bond Expire
We’ve learned through our work that allowing a performance bond to expire before a project is completed can lead to serious complications. From what we’ve seen, an expired bond leaves the project owner vulnerable, with no financial protection if the contractor fails to meet their obligations. We’ve been in situations where this oversight caused significant project delays and financial strain. We’ve come to appreciate that diligently monitoring bond expiration dates and arranging renewals when necessary is crucial for maintaining project security.
Conclusion: Leveraging Performance Bonds for Project Success in Missouri
In our experience, performance bonds are an indispensable tool in Missouri’s construction landscape, offering vital protection for both contractors and project owners. We’ve come to the conclusion that understanding the specifics—from the differences with bank LOCs to the implications of claims and bond expirations—can make a significant difference in project outcomes. As always, clear communication, meticulous planning, and proactive management are the keys to leveraging performance bonds effectively in your projects.
See more at our Texas Performance Bond page.
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