Performance Surety Bonds — Get Coverage

A performance bond is a surety bond that guarantees a contractor will complete contracted work according to the agreement. It involves three parties: the principal, usually the contractor; the obligee, usually the project owner or public entity; and the surety provider. If the contractor defaults, the bond helps protect the obligee according to the bond terms.

The cost of a $100,000 performance bond depends on underwriting factors such as contractor experience, financial strength, credit, work in progress, contract type, and bond form requirements. Well-qualified applicants may see premiums based on a small percentage of the bond amount, while higher-risk accounts can cost more. Atlantic Coast Surety reviews the full file to pursue competitive options.

Performance bonds are commonly required for contractors working on public projects, private construction contracts, municipal improvement work, and certain commercial obligations. The obligee may require the bond before awarding or finalizing the contract. Contractors, developers, and businesses use these bonds to demonstrate financial responsibility and provide assurance that the contracted work will be completed.

A performance bond application typically requires the contractor’s company information, obligee details, job description, project location, contract amount, bond penalty, contract dates, and how the job was awarded. Underwriters may also review bid results, financial standing, credit, bonded and unbonded work in progress, and special bond form language before approval.

Timing depends on the size and complexity of the bond, completeness of the application, financial documentation, and whether the bond form requires special underwriter approval. Smaller, straightforward requests may move more quickly, while larger contract bonds often require deeper review of financials, experience, backlog, and contract terms before issuance.

No. A performance bond guarantees completion of the contracted work, while a payment bond protects certain subcontractors, laborers, and suppliers by ensuring they are paid according to project requirements. Many construction contracts require both bonds together as part of a contract surety package, especially for public projects or larger private contracts.

Newer contractors may qualify, but underwriting often focuses closely on project size, relevant experience, financial condition, credit, management background, and existing workload. Starting with appropriately sized contracts can improve approval opportunities. A bond-only agency can help present the file clearly and match the contractor with markets that fit the risk profile.

A bond-only agency focuses specifically on surety requirements, underwriting expectations, bond forms, and market placement. Atlantic Coast Surety has more than 20 years of experience, access to standard and specialty markets, and relationships with A-rated and better, T-listed providers. That focus helps clients receive knowledgeable guidance and customized programs.