Performance &Payment Bonds
Get both bonds for one premium. Miller Act compliant for federal contracts over $150,000. The smart choice for construction contractors. You pay nothing until your bond is issued and delivered.
Get Your P&P Bond Quote
One premium covers both bonds
Performance Bond vs. Payment Bond
Both bonds issued together for a single premium
| Feature | Performance Bond | Payment Bond |
|---|---|---|
| Protects | Project owner | Subcontractors & suppliers |
| Guarantees | Project completion per contract terms | Payment to downstream parties |
| Triggered By | Contractor default or abandonment | Contractor non-payment |
| Coverage | 100% of contract value | 100% of contract value |
| Miller Act | Required over $150K | Required over $150K |
| Beneficiary Files Claim | Project owner / obligee | Unpaid sub or supplier |
| Separate Premium? | No — one premium covers both | No — one premium covers both |
Both bonds are required together on federal contracts over $150,000 under the Miller Act (40 U.S.C. §§ 3131-3134).
Learn more about each bond individually: performance bonds | payment bonds
Two Bonds, One Premium
Understand what each bond protects and why you need both. Together they form the core of contract bonding for public projects.
Performance Bond
Protects project ownerGuarantees the contractor will complete the project according to contract terms, specifications, and timeline.
Learn morePayment Bond
Protects subcontractorsGuarantees subcontractors, suppliers, and laborers will be paid for their work and materials.
Learn moreNot sure which bond you need? Our surety bond overview explains the different types, or see how bonds differ from insurance.
Why Combined P&P Bonds Are the Industry Standard
On virtually every public construction project requiring bonding, both performance and payment bonds are mandatory. The federal Miller Act requires both for contracts over $150,000, and state Little Miller Acts follow suit. Rather than pricing each bond separately, the surety industry issues them as a package with a single premium—making combined P&P bonds the most cost-effective way to meet bonding requirements.
When you purchase P&P bonds, most sureties also include bid bonds at no additional cost. This means a single bonding relationship covers the entire three-bond sequence required for competitive public bidding. For a full breakdown of what you'll pay, use our surety bond cost guide or the combined P&P bond calculator.
P&P Bond Pricing
One premium for both bonds - rates vary by credit and contract size
Best Value in Construction Bonding
Pay one premium and get both performance AND payment bonds. No separate charges. See full cost breakdown.
When P&P Bonds Are Required
Federal Miller Act and state "Little Miller Acts" mandate bonding. Learn more in our Miller Act requirements guide.
Federal Miller Act
State Little Miller Acts
Many states also require contractor license bonds as a prerequisite for bidding on public work. For a full guide to getting bonded, see how to get a surety bond.
Approval Timeline
Fast approval for most contract sizes
Frequently Asked Questions
Common questions about P&P bonds
What are payment and performance bonds?
How much does a combined P&P bond cost?
When are P&P bonds required?
Do I pay separately for performance and payment bonds?
How long does approval take?
What is the difference between a performance bond and a payment bond?
Can I get P&P bonds with bad credit?
Related Bond Types
Complete your construction bonding package
Bid Bonds
Required to submit competitive bids - often free with P&P bonds
Performance Bonds
Standalone performance bond information
Payment Bonds
Standalone payment bond information
Contract Bonds
All construction bonding types explained
Related Construction Bond Types
Bid Bonds
Required to bid on public and federal projects
Contractor License Bonds
State-required bonds to obtain a contractor license
Construction Bonds
Complete guide to construction surety bonds
General Contractor Bonds
License and project bonds for general contractors
Contract Bonds
Bonds tied to specific contract obligations
Miller Act Requirements
Federal bonding requirements for government contracts
All content is researched from official state and federal sources (.gov) and verified before publication. BuySuretyBonds.com works with Treasury-certified, A- minimum rated surety carriers serving all 50 states.
Ready to Get Your P&P Bonds?
Get both performance and payment bonds for a single premium. Fast approval for federal and state construction projects up to $14M. You never pay until your bonds are issued and in hand.