Performance Bonds: Secure Major Contracts Worth $100K-$50M+
Unlock access to the most profitable construction projects. Bond Genius AI provides performance bonds for qualified contractors with 1-day decisions and A- rated carriers or better. Projects from $100K to $50M+ with rates starting at 0.5%.
Construction guarantees in 24 hours • Rates from 0.5% • Projects to $50M+
✓ Miller Act compliant ✓ A- rated carriers or better ✓ All 50 states ✓ 1-day decisions
Last Updated: January 19, 2025
Why Construction Guarantees Are Critical for Your Business
Industry research shows the competitive advantage of bonded contractors
"Bonded projects cost less than unbonded projects. Unbonded projects face a significantly higher cost of completion upon default - 85% higher."- Ernst & Young QUEST Report, "The Economic Value of Surety Bonds" (2022)
"5 times as many public and private owners reported bonded projects are more likely to be completed on time or ahead of schedule than non-bonded projects."- EY/SFAA Study on Construction Project Performance
"96% of respondents reported that pre-qualification was performed for bonded projects as compared to 61% for non-bonded"- EY/SFAA Construction Performance Study
Contract Surety Requirements: What You Need to Know
Construction guarantees require comprehensive underwriting due to contract values and completion guarantees
- All federal construction contracts over $150,000
- Contract surety: 100% of contract value
- Treasury listed surety companies only
- Requirements detailed in FAR Part 28
- Bond Genius AI works exclusively with Treasury-approved carriers
- Varies by state (typically $25,000 - $100,000 threshold)
- Schools, highways, municipal projects
- "Little Miller Acts" mirror federal requirements
- State-approved surety companies required
- Increasingly required for large commercial projects
- Protects owner investment from contractor default
- Demonstrates contractor financial strength
- Required for design-build and P3 projects
What is a Performance Bond?
Understanding performance bonds is essential for contractors bidding on major projects
Learn the fundamentals of performance bonds
This video explains what performance bonds are, why they're required, and how they protect both contractors and project owners in construction projects.
Get Your Performance Bond QuoteHow Bond Genius AI Construction Guarantees Work
From application to bond approval - all powered by advanced AI
Step 1: Submit Comprehensive Application
Bond Genius AI analyzes your project details, financial capacity, and experience. Upload required documents including financial statements and project specifications.
Step 2: AI-Powered Underwriting Review
Our advanced algorithms trained on millions of bond applications review your submission alongside experienced underwriters for complex projects.
Step 3: Approval & Bond Issuance
Once approved, complete e-signature and payment for immediate bond delivery. We can file with obligees if required.
Project Completion Bond Rates by Contract Size
Market Analysis Updated: January 2025 - Bond rates decrease with project size and contractor strength
Common Project Types:
Common Project Types:
Common Project Types:
Common Project Types:
Performance Bond Rates by Project Size
Bond rates and requirements vary based on contract value and complexity
Typical Projects:
Municipal work, small commercial
Requirements:
Basic financial statements, 3 years experience
Typical Projects:
Major commercial, infrastructure
Requirements:
Audited financials, 5+ years experience, strong work-in-progress
Typical Projects:
Large infrastructure, major developments
Requirements:
CPA-prepared statements, 10+ years experience, significant bonding capacity
Typical Projects:
Highways, airports, major facilities
Requirements:
Audited financials, extensive experience, prequalification process
Performance Bond Benefits
Protecting owners, contractors, and project stakeholders
For Project Owners:
- Guarantees project completion if contractor defaults
- Protects against financial loss from contractor failure
- Ensures work meets contract specifications
- Provides recourse through surety company
For Contractors:
- Demonstrates financial strength and reliability
- Enables bidding on larger, more profitable projects
- Required for public works and many private projects
- Builds credibility with project owners and partners
Performance bonds require extensive underwriting due to the higher risk and contract values involved. Contractors must demonstrate financial capacity and construction experience.
- Three years of audited or CPA-prepared financial statements
- Detailed work-in-progress schedule showing current projects
- Bank references and lines of credit information
- Resume of key personnel and project experience
- Equipment list and ownership documentation
- Current projects list with contract values and completion dates
Your bonding capacity determines the maximum contract size you can secure. Surety companies evaluate multiple factors to determine capacity limits.
Related Construction Bonds
Performance bonds are often required alongside other construction bonds
Payment Bonds
Guarantees payment to subcontractors and suppliers
Bid Bonds
Required when submitting bids for construction projects
Contractor Bonds
Required for contractor licensing in most states
Ready to Secure Your Next Major Project?
Construction guarantees unlock access to larger, more profitable contracts
The average bonded contractor wins 3x more contract value than unbonded competitors. With Bond Genius AI, you'll get fast approvals and competitive rates from A- rated sureties.