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What is required to get a Performance Bond?

If you're looking to get a performance bond, contractors will usually have to pay a premium on the amount of money and also interest. The price for this is dependent on how much it costs as well as what kind of risk (creditworthiness) your contractor presents.

Do you need a performance bond?

If your project requires a performance bond, Swiftbonds is here to help. We provide fast and easy service for any type of performance bond application, including those from international contractors.

Our goal is to make sure that our customers have everything they need when it comes time to apply for their performance bond. Whether you’re an individual or company looking for a new job, we want you to succeed!

Apply today by clicking this link!

What are performance bonds and are they required on all proposals?

In order to secure the contractor's promise, performance bonds are required on all proposals. If you're looking for a little more protection in case of nonpayment or delayed payment from your contractor, then it may be worth considering using Payment Bonds as well.

Who obtains a performance bond?

A performance bond is issued to one party of the contract as a guarantee against the failure of another party. A bank or an insurance company issues this type of service, and it's usually given in exchange for some form of money security such as cash deposit. Find a What is a Performance Bond on a Construction Project?

How much does a performance bond cost?

The cost of a Performance Bond is usually less than 3% of the contract price. There are cases where it might be more, such as when contracts under $1 million or if the contractor has poor credit.

When should I request a performance bond from my contractor?

Safety is of the utmost importance when you are negotiating with your contractors. That's why it's crucial that you ask for a performance bond before any work begins so that there isn't an added risk in getting what was promised to you at no extra cost.

How long does it take to get a performance bond?

It takes 24-72 hours to get a performance bond, so this time must be calculated into the turnaround. Read a How do you get a Two Percent (2%) Performance Bond?

How do you benefit from a performance bond? 

If you opt to purchase a surety bond, then the company is there for every step of your project. They will help ensure that everything is legal and on time before they release any payments to make it as easy as possible!

Should I get a performance bond?

Performance Bonds offer plenty of advantages to all. A contractor becomes marketable, and the issuer garners new clients in the middle of construction season!

What is the difference between a performance bond and bank guarantee?

A construction performance bond is actually an insurance policy that guarantees payment of any contract. The right to claim under this type of agreement lies in non-performance rather than just monetary defaults like with bonds.

What is the difference between a performance bond and letter of credit?

A letter of credit is a type of surety bond in which an insurance company agrees to assume the financial obligations if one party defaults. A performance bond guarantees that said party will adhere to certain specifications, such as timelines and design requirements. See a What is difference between Surety Guarantee and Performance Bond?

What does a performance bond cover?

A performance bond is a contract clause that covers losses in the case of unfulfilled service. It prevents an owner from incurring any financial loss if their contractor doesn't show up, and it protects against possible overages as well - meaning you're good for whatever they can do!

What does it mean to release a performance bond?

The bond may be needed for a trade license or to guarantee your performance of the contract. If you no longer need this, then releasing the property and any collateral will allow you not worry about paying more premiums anymore.

What happens when a performance bond expires?

It's important to know what happens when a performance bond expires, because it can happen sooner than you think. When the contract ends and comes up for renewal, make sure that your financial instruments are in order or else there may be consequences!

What is an unconditional performance bond?

An unconditional/demand bank guarantee does not require any proof of default, and the Owner will generally receive payment of the full amount upon presentation to the issuer. View our What is Maintenance Period in relation Performance Bond?

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