You can now apply online for a Washington 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 Washington?
How do I get a Performance and Payment Bond in Washington?
We make it easy to get a contract performance bond. Just click here to get our Washington Performance Application. Fill it out and then email it and the Washington 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.
Discover how does a performance bond work in construction to protect your projects and ensure contractors fulfill their obligations effectively.
Performance bonds definition in Washington?
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 WA?
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 Washington. 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 WA
Just call us. We’ll work with you to get the best Washington bond possible.
We provide performance and payment bonds in each of the following counties:
Adams
Asotin
Benton
Chelan
Clallam
Clark
Columbia
Cowlitz
Douglas
Ferry
Franklin
Garfield
Grant
Grays Harbor
Island
Jefferson
King
Kitsap
Kittitas
Klickitat
Lewis
Lincoln
Mason
Okanogan
Pacific
Pend Oreille
Pierce
San Juan
Skagit
Skamania
Snohomish
Spokane
Stevens
Thurston
Wahkiakum
Walla Walla
Whatcom
Whitman
Yakima
And Cities:
Seattle
Spokane
Vancouver
Tacoma
Olympia
Bellevue
Everett
Bellingham
Yakima
Kent
See our West Virginia Performance Bond page here.
Why Performance Bonds Offer More Flexibility Than Bank Letters of Credit?
From our perspective, the distinction between performance bonds and bank letters of credit is crucial for project owners and contractors in Washington. Performance bonds are designed to ensure that a contractor fulfills their obligations under a contract, while bank letters of credit serve as a financial guarantee that funds will be available if the contractor defaults. In our observation, performance bonds provide more comprehensive protection because they involve the surety’s involvement in completing the project. We’ve found that letters of credit, on the other hand, are more focused on securing payment without guaranteeing project completion.
Why Performance Bonds Are Typically Non-Refundable?
We’ve noticed that performance bonds are typically non-refundable once issued. This is because the bond premium is paid to cover the surety’s risk throughout the duration of the project. However, what we’ve discovered is that, in rare cases, if the project is canceled before any work begins, some sureties may offer a partial refund. In our opinion, it’s essential to understand that these refunds are exceptions, and project owners and contractors should not expect a full refund once the bond is in place.
How Sureties Handle Performance Bond Claims?
In our professional life, we’ve had firsthand experience with claims being filed on performance bonds, and we’ve consistently found that the process can be challenging. When a claim is filed, the surety investigates whether the contractor has failed to meet their contractual obligations. We’ve seen firsthand that if the claim is valid, the surety will either pay the project owner for damages or hire another contractor to complete the work. In our view, claims can be damaging to the contractor’s reputation and may impact their ability to secure future bonds.
What Must Be Done to Release a Performance Bond?
From what we’ve seen, performance bonds are usually released once the project is completed to the satisfaction of the project owner and all obligations have been met. We’ve learned that final inspections, corrections, and the project owner’s approval are critical steps in releasing the bond. In our dealings with various projects, we’ve come to appreciate the importance of completing all contractual requirements before the bond can be released, as this ensures that no financial or legal issues remain unresolved.
Breaking Down the 100 Percent Performance and Payment Bond Requirement
In our experience, 100 percent performance and payment bonds provide comprehensive coverage for both the completion of the project and the payment of subcontractors and suppliers. We’ve come to understand that these bonds are widely used in large-scale projects across Washington because they protect all parties involved. Our experience has shown us that these bonds ensure the contractor will fulfill their duties and that everyone working on the project will be compensated, creating a sense of security for all stakeholders.
How Long Will It Take for Your Performance Bond to Be Issued?
We’ve realized that the time it takes to secure a performance bond can vary widely depending on factors such as the complexity of the project and the contractor’s financial standing. In our line of work, we’ve encountered instances where smaller projects with straightforward requirements were able to secure bonds within a few days. However, larger projects often require a more thorough review, and in our observation, it can take several weeks for the surety to fully assess the contractor’s eligibility and risk profile.
The Consequences of an Expired Performance Bond: What You Should Be Aware Of
We’ve encountered situations where a performance bond expired before a project’s completion, and the consequences can be severe. In our view, allowing a bond to expire leaves the project owner vulnerable to financial loss and creates legal complications. We’ve learned that sureties are no longer obligated to cover claims once the bond has expired, meaning it’s crucial to renew or extend the bond before its expiration. From our perspective, managing the bond’s timeline is just as important as managing the project itself to avoid any gaps in protection.
In conclusion, we’ve come to the realization that performance bonds play a vital role in ensuring the success and security of construction projects in Washington. Understanding how they work and their nuances can help contractors and project owners navigate the bonding process more effectively and safeguard their interests.
See more at our Virginia Performance Bond page.
Learn more on How to get bonded in Washington State.
