Construction Performance Bond

No. Construction Performance Bond is an educational website and referral directory. We explain how construction surety bonds work and connect you with independent licensed surety agents and brokers. We don't issue bonds or give legal or financial advice about your project.

A performance bond guarantees the project owner that the contractor will complete the work as agreed; a payment bond guarantees that subcontractors and suppliers get paid. Public projects often require both, sometimes combined in a single document.

A bid bond guarantees that a contractor who wins a public bid will sign the contract and provide the required performance and payment bonds. Owners typically require it with the bid submission, before the contract is awarded.

The Miller Act requires performance and payment bonds on most federal construction contracts above a set dollar threshold. Little Miller Acts are state and local laws that require similar bonds on state and municipal public projects; the details vary by state.

Underwriters typically look at the three Cs: character (track record and reputation), capacity (experience and ability to complete the work) and capital (financial strength). Bond capacity and terms vary by contractor and by surety.

Often yes. Programs such as the SBA Surety Bond Guarantee Program and state small-business bonding assistance exist specifically to help new, small or disadvantaged contractors qualify. A licensed surety agent can explain which options may apply.

Licensed surety agents and brokers can list for free, or reserve an exclusive territory — a ZIP code, a state, or the whole country — so contractors in that area who ask for help are connected to them.