You can now apply online for a New Hampshire 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 New Hampshire?
How do I get a Performance and Payment Bond in New Hampshire?
We make it easy to get a contract performance bond. Just click here to get our New Hampshire Performance Application. Fill it out and then email it and the New Hampshire 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.
How much does a Performance Bond Cost in New Hampshire?
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 NH?
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 New Hampshire. 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 NH
Just call us. We’ll work with you to get the best New Hampshire bond possible.
We provide performance and payment bonds in each of the following counties:
Belknap
Carroll
Cheshire
Coos
Grafton
Hillsborough
Merrimack
Rockingham
Strafford
Sullivan
And Cities:
Manchester
Nashua
Concord
Portsmouth
Keene
Derry
Merrimack
Rochester
Lebanon
Exeter
See our New Jersey Performance Bond page here.
Exploring the Complexities of Performance Bonds
Beyond the Basics: Unraveling the Mystery of Performance Bonds vs. Bank Letters of Credit
From our perspective, understanding the distinction between performance bonds and bank letters of credit (LOC) is essential for anyone involved in construction or large-scale projects. Performance bonds provide a guarantee that the contractor will fulfill their obligations as specified in the contract, offering financial protection to the project owner. In contrast, a bank LOC primarily ensures payment but does not directly guarantee project completion. We’ve noticed that while both tools offer security, performance bonds cover a broader range of risks associated with project performance.
Refund Policies: The Cost of Performance Bond Security
We’ve found that one common question among contractors is whether performance bonds are refundable. In our observation, performance bonds are typically non-refundable. The premium paid to secure the bond is considered a fee for the surety’s assumption of risk. Even if the bond is not utilized or the project is completed without issues, the premium remains non-recoverable. What we’ve discovered is that understanding this upfront can help contractors plan their budgets more effectively.
Claims and Consequences: Navigating the Performance Bond Claims Maze
In our professional life, we’ve encountered situations where claims on performance bonds can lead to significant financial and reputational consequences for contractors. If a claim is filed, the surety company investigates to determine its validity. Should the claim be upheld, the surety may either compensate the obligee or ensure that the project is completed by another contractor. We’ve consistently found that contractors are then responsible for reimbursing the surety, which can create substantial financial strain.
Timing is Crucial: Understanding Performance Bond Release
We’ve had the privilege to work on numerous projects where the release of a performance bond marked a critical milestone. Typically, performance bonds are released once the contractor has fulfilled all their contractual obligations and the project owner has formally accepted the completed work. We’ve learned that sometimes, a warranty period may apply, during which the contractor remains liable for any issues that arise. In our view, successfully navigating this stage is crucial for the contractor’s reputation and future opportunities.
Maximum Protection: How Powerful 100 Percent Performance and Payment Bond?
In our dealings with various projects, we’ve come across the term "100 percent performance and payment bond," which is particularly significant in the construction industry. This bond ensures that the contractor will complete the project and pay all related costs, including those for subcontractors and suppliers. We’ve come to appreciate that this type of bond offers maximum security to the project owner, making it a highly valued form of protection.
The Bonding Process: Securing a Performance Bond
In our experience, the time required to obtain a performance bond can vary depending on several factors, including the project’s complexity and the contractor’s financial standing. We’ve been in situations where bonds were issued within a few days, while other cases took weeks. We’ve concluded that early preparation, thorough documentation, and clear communication with the surety company are key to expediting the bonding process.
The Risks of Expiration: Protecting Your Project with Performance Bonds
We’ve personally dealt with the challenges that arise when a performance bond expires before a project’s completion. If a bond expires, the contractor may face severe consequences, including penalties or even the termination of the contract. We’ve found over time that it’s vital for contractors to monitor their bond’s expiration dates closely and ensure they renew or replace the bond as needed to maintain continuous coverage.
Conclusion: Mastering the Essentials of Performance Bonds in New Hampshire
We’ve come to the conclusion that a deep understanding of performance bonds is crucial for contractors and project owners alike. By recognizing the differences between performance bonds and LOCs, knowing how claims are handled, and being aware of the timing for bond release, stakeholders can better navigate the complexities of construction projects. With the right knowledge and preparation, performance bonds become a powerful tool for ensuring project success and financial security.
See more at our Rhode Island Performance Bond page.
