Contractors License Performance Bond

A contractors license performance bond for state contracts is a surety bond that guarantees contractors will complete state-awarded projects according to contract terms and pay all subcontractors and suppliers. It combines performance and payment bond protection.

State contract performance bond premiums typically range from 1-3% of the contract value annually. For a $1 million project, you might pay $10,000-$30,000. Rates depend on your financial strength, project type, and bonding capacity.

Most states require performance and payment bonds equal to 100% of the contract value. Some states may require separate bonds for performance and payment, while others accept combination bonds covering both obligations.

State contract performance bonds typically take 1-3 business days for approval, depending on the project size and contractor qualifications. Large projects ($10M+) may require additional underwriting time.

Yes, smaller contractors can obtain state contract bonds, though bonding capacity depends on financial strength. We work with contractors of all sizes and can help develop bonding capacity over time.

If a valid claim is filed, the surety may complete the project or pay damages up to the bond amount. The contractor is responsible for reimbursing the surety for any payments made under the bond.