Get Construction Bonds FastAccess the $2.2T Market
Stop losing bids to bonded competitors. Get performance bonds, payment bonds, and contractor license bonds with same-day approval and rates starting at 0.75%.
Bonded contractors are capturing record projects while unbonded competitors wait on the sidelines
✓ 24-hour decisions ✓ A- minimum rated carriers ✓ All bond types ✓ Licensed in all 50 states
Why Your Competitors Are Winning Bigger Construction Contracts
Ernst & Young's research with the Surety & Fidelity Association reveals a shocking truth: unbonded construction projects that experience contractor defaults face 85% higher completion costs. Project owners know this. That's why bonded contractors get the calls for lucrative projects while unbonded contractors fight over scraps.
"The surety market has been very strong for many years, but the boost has come from the infrastructure package that came out in 2021. With $550 billion in federal infrastructure spending (40% already deployed), bonded contractors are positioned to capture unprecedented opportunities."— Karl Choltus, National Surety Practice Leader at Brown & Brown
"In the last few years, FSB has provided over $100 million dollars of bonds for our projects. Our bonding capacity grew from $500,000 to $75 million through our surety partnership."
"We changed to Unique Surety after being with a bonding agent for 5 years. Unique Surety arranged for much higher performance bonding limits at a much better rate which opened the door to greatly expanding our business. Without Robin and her staff at Unique Surety we would absolutely not be where we are today."
These aren't outliers. Construction Business Owner's analysis found that 100% of construction default experts confirmed sureties have the expertise, tools, and resources to complete projects after contractor default—giving bonded contractors a massive credibility advantage.
"Most thorough academic treatment of surety bonds, covering all terminology, bond types, and practical applications"— Virginia Tech Construction Contracting Program
This comprehensive resource provides both theoretical understanding and practical examples of contractor bonds and construction bonds, making it an excellent educational supplement for understanding the complete bonding process.
Read Virginia Tech Surety Bonds Chapter →Which describes your situation best?
What You Actually Need to Know About Construction & Contractor Bonds
Contractor license bonds up to $25,000 qualify for instant approval with no credit check (except California)
This video covers contractor bond basics, state requirements, costs, and approval process.Get your quote after watching →
Learn about the three essential construction bonds that work together to protect all parties in construction projects: bid bonds for project bidding, performance bonds for project completion, and payment bonds for subcontractor protection.Get construction bond quote →
Common Applications:
Common Applications:
Common Applications:
Common Applications:
| State | Bond Amount | Starting Rate | Recent Changes | Action |
|---|---|---|---|---|
California California Contractors State License Board | $25,000 | $250/year | 2023 ALWAYS requires underwriting due to adverse clauses - no instant approval | Get Quote |
Washington Washington State Department of Labor & Industries | $30,000 | $300/year | 2024 Instant approval available up to $25,000 for qualifying bonds | Get Quote |
New Jersey New Jersey Division of Consumer Affairs | $25,000-$50,000 | $375/year | 2024 Instant approval available up to $25,000 for qualifying bonds | Get Quote |
Texas Texas Department of Licensing and Regulation | $10,000 | $100/year | Current Instant approval available - no soft credit check required | Get Quote |
Florida Florida Department of Business and Professional Regulation | $5,000-$20,000 | $125/year | Current Instant approval available up to $25,000 for qualifying bonds | Get Quote |
Additional Construction Bond Types
Common Applications:
Common Applications:
Common Applications:
The Hidden Benefits Your Bond Agent Won't Tell You
"The cornerstone of these long-standing relationships is not simply providing surety capacity. It's things like taking a deep interest in your clients' business, listening, preparedness, and fostering an environment of consistency."— Rich Barnett, Chubb Surety
Translation: Good sureties don't just write bonds—Bond Genius AI helps you:
Improved Financial Management
Sureties help reduce your operating costs through better financial oversight
Better Banking Relationships
Bonded contractors access superior financing terms and credit facilities
Growth Navigation
Expert guidance helps you expand without overextending your resources
Credibility Advantage
Win contracts before you even bid due to bonded contractor reputation
What Construction & Contractor Bonds Really Cost (And How to Pay Less)
Market data from 2024 shows loss ratios increased to 21.0% from 15.0% in 2022, but here's the good news: competition keeps rates low for qualified contractors.
Pro tip: "CPA-prepared statements often reduce premiums enough to offset accounting costs," according to industry underwriting standards. Plus, monthly work-in-progress reports show you're a sophisticated operator, not a fly-by-night contractor.
Common Bonding Problems (And Real Solutions)
Covers up to $14 million for federal projects at just 0.6% additional cost. Set up an IRS payment plan first, then apply.
Provide bonds for contracts up to $500,000 with minimal financials. Perfect for breaking into the bonded contractor ranks.
Funds control arrangements cost 0.5-1% of contract value but don't tie up your assets. Use cash, letter of credit, or real estate as collateral.
Get your license bond, perform well, build a relationship with your surety. Within 2-3 years, you could be bonding million-dollar projects.
State-Specific Contractor Bond Intel You Need
Beyond the basic license bond, you might need:
- Qualifying individual bond ($25,000)
- LLC employee/officer bonds (up to $100,000)
- Disciplinary bonds if you've had issues
Recent Changes:
Increased to $25,000 in 2023 (67% jump from $15,000)
Beyond the basic license bond, you might need:
- Electrical contractors: $10,000
- Plumbing contractors: $10,000
- Houston contractors: $5,000-$50,000
- Dallas/Austin contractors: Varies by trade
Recent Changes:
No statewide general contractor license required
Beyond the basic license bond, you might need:
- Division I (unlimited): $20,000 if credit below 660
- Division II (limited): $5,000-$10,000
- Local competency cards: Varies by county
Recent Changes:
Penalty increases for violations in 2024
Beyond the basic license bond, you might need:
- General contractors: $30,000 (as of July 2024)
- Specialty contractors: $15,000
- Penalties increased to $10,000 for violations
Recent Changes:
First increase since 2001 - effective July 2024
The Digital Revolution Making Construction Bonding Easier
"68% of contractors prefer receiving bonds digitally," according to industry research. The old days of waiting weeks for bond approval are over.
- Instant approval for qualified contractors
- Electronic delivery to licensing agencies
- Online bond management and renewals
- Real-time certificate verification
- Blockchain technology coming in late 2024
- NFT-based tamper-proof digital bonds
Blockchain technology with RiskStream Collaborative pilots launching late 2024.
Why Private Construction Projects Now Require Bonds Too
Construction Dive reported in 2023: "Bonding is no longer just a requirement for public works projects." Private construction owners increasingly demand bonds because:
Supply chain disruptions make project completion uncertain
Labor shortages increase default risk
Material cost volatility can bankrupt contractors mid-project
Lenders often require bonds for construction loans
Your Action Plan for Bonding Success
- 1Check Your Credit Now: Know your score before applying. If it's below 650, start improving it or explore SBA programs.
- 2Get Your Financials in Order: Separate business and personal finances, get CPA-prepared statements, track work-in-progress monthly.
- 3Start with Your License Bond: Build a relationship with a surety company through your basic license bond.
- 4Document Everything: Keep records of completed projects, client testimonials, safety records, supplier relationships.
- 5Plan for Growth: Once bonded, you can bid larger projects, work in multiple states, access better financing, command higher margins.
The Bottom Line for Your Construction Business
The U.S. surety market generated $9.3 billion in premiums in 2023, with projections reaching $33.15 billion globally by 2032. This isn't bureaucratic growth—it's market validation that bonds work.
Higher on-time completion rates for bonded projects
Federal infrastructure spending available
Lower completion costs vs unbonded defaults
With infrastructure spending at historic highs and private projects increasingly requiring bonds, there's never been a better time to get bonded. The question isn't whether you need a bond—it's whether you'll use construction and contractor bonding strategically to grow your business or let your competitors capture the opportunities.