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Janitorial Performance Bonds for Government Contracts

Cleaning companies bidding on school districts, federal buildings, and large commercial contracts need performance bonds. Here's everything you need to know about costs, requirements, and getting approved.

$100-350
Fidelity Bonds
1-3%
Performance Bonds
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24-48hr
Approval Time
$100
Starting Cost
580+
Min Credit Score
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Understanding the Two Types of Janitorial Bonds

Most cleaning companies need both - here's the difference

Fidelity Bond (Employee Dishonesty)

Protects clients from employee theft. Required by many commercial clients. Cost: $100-$350 annually.

Annual Cost:$100-$350

Performance Bond (Contract Guarantee)

Guarantees you'll complete the contract. Required for government cleaning contracts. Cost: 1-3% of contract value.

Annual Cost:1-3% of contract

Who Requires Performance Bonds?

Understanding federal, state, and local requirements

Federal Contracts

Usually NO bond required

Federal janitorial contracts under $350,000 typically DON'T require performance bonds. The FAR regulations treat service contracts differently than construction.

State & Local

Often REQUIRED

School districts, cities, counties - they LOVE requiring bonds. California requires them over $25,000. Texas over $100,000.

Commercial Clients

Rarely required

Most commercial clients just want that cheap fidelity bond to protect against employee theft. Having bonds can help you win contracts even when not required!

5-Week Roadmap to Getting Bonded

Start 2-3 months before you need the bond

1

Week 1-2: Paperwork

  • 3 years tax returns
  • Bank statements
  • List of contracts
2

Week 2-3: Find Agent

  • 15+ surety companies
  • Knows SBA program
  • Returns calls same day
3

Week 3-4: Underwriting

  • Fill out questionnaire
  • Underwriter reviews
  • Provide additional docs
4

Week 4-5: Approval

  • Receive rate quote
  • Review conditions
  • Sign indemnity agreement
5

Week 5: Bond Execution

  • Sign documents
  • Pay premium
  • Receive bond same day
∞

Ongoing: Build Capacity

  • Complete contracts on time
  • Keep cash in business
  • Update financials quarterly

Frequently Asked Questions

What is a janitorial performance bond?
A janitorial performance bond guarantees that a cleaning company will complete their contract according to terms. Unlike fidelity bonds that protect against employee theft ($100-350/year), performance bonds cost 1-3% of contract value and are required for most government cleaning contracts.
How much do janitorial performance bonds cost?
Janitorial performance bonds typically cost 1-3% of the contract value annually. For a $500,000 contract, expect to pay $5,000-$15,000 per year. Fidelity bonds cost much less at $100-350 annually for basic coverage.
Who needs janitorial performance bonds?
Janitorial contractors bidding on government contracts, large commercial projects, or working with clients requiring bonded contractors need performance bonds. Many federal, state, and municipal cleaning contracts require them.
How long does it take to get a janitorial performance bond?
Small bonds under $100,000 can be approved in 24-48 hours with good credit. Larger bonds requiring financial review take 3-7 business days. Having financial statements ready expedites the process.
Can I get a janitorial performance bond with bad credit?
Yes, but rates will be higher. Bonds are available for all credit levels. Poor credit may result in rates of 5-15% and require collateral. The SBA bond guarantee program helps contractors with credit challenges.

Related Performance Bonds

IT Services
Technology projects
Logistics
Supply chain
Professional
Consulting
Facility Mgmt
Building ops
Maintenance
Repair services

Official Resources

U.S. Department of Treasury - Surety Bond Program

Official list of Treasury-certified surety companies authorized to write federal bonds

Small Business Administration - Surety Bond Guarantee Program

SBA bonding assistance for small contractors on federal and private contracts

Written by BuySuretyBonds.com
Licensed surety bond agency operating nationwide with direct integrations to Treasury-certified surety carriers. Our platform enables instant approval for license and notary bonds, with 24-48 hour underwriting for commercial bonds. All content is researched from official state and federal sources (.gov) and reviewed by licensed insurance professionals.
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