Payment and Performance Bonds

Payment and performance Bonds

In most states contract surety is required for construction jobs that are paid with public funds in excess of $25,000. We have Bid, Payment, Performance, Labor & Materials for all contractors. Apply or Call 1-844-933-4455.

Payment and Performance Bonds

will usually start with a bid bond, to bid the job. When the job is awarded to the winning bidder, a payment and or performance bond will then be required as a security to the job completion.

Payment and Performance Bonds

are required on many public funded construction projects. The performance bonds function is if the contractor fails to perform according to the specifications laid out by the contract, the client is guaranteed compensation for any monetary loss up to the amount of the performance bond.

The payment bond forms a three-way contract between the Owner, the contractor and the surety, to make sure that all sub-contractors, laborers, and material suppliers will be paid leaving the project lien free.

Payment and Performance Bonds

are generally required because of The Miller Act and Little Miller Act. These acts addresses two concerns that would otherwise exist in the performance of government construction projects:

1. Performance Bonds: The contractor's abandonment or other nonperformance of a government job may cause critical delays and added expense in the government procurement process.

2. Payment Bonds: Subcontractors and material suppliers would otherwise be reluctant to work on such projects (knowing that sovereign immunity prevents the establishment of a mechanic's lien), diminishing competition and driving up construction costs.

Additional Information

Obtaining a contract bond at Jane Bond Surety is simple.
Many bonds can be obtained in as little as an hour. Some take longer. Use the highlighted bullet points above to determine what you can expect when applying for this bond. Many (not all) bonds require a credit check. In many instances it simply depends on the actual bond one is applying for and the insurance company's experience in that category. Some bonds are considered low risk and some are considered higher risk. Bonds that do not require a credit check are usually instantly issued.

We, at Jane Bond Surety & Insurance, take your contract bond very seriously. We also consider the cost. We make every effort to obtain the quickest bond at the lowest rate. If at any juncture you have any questions call us at: 1-844-933-4455.

The Process