North Dakota Performance BondN.D.C.C. § 48-01.2-10
North Dakota's Little Miller Act requires a performance bond, and a payment bond alongside it, on covered public works contracts. The trigger: $250,000. The performance bond guarantees the public owner that the job gets finished; the payment bond protects the subcontractors and suppliers who cannot lien public property.
North Dakota's $250,000 trigger is higher than the federal Miller Act's $150,000, so a public job between the two amounts can need bonds if it is federally funded but not under state law.
- Who requires it: North Dakota public owners awarding covered public works contracts (N.D.C.C. § 48-01.2-10).
- Amount: Performance bond: At least 100% of contract price (one bond covers performance and payment). Payment bond: At least 100% of contract price (one bond covers performance and payment).
- Typical cost (estimate): about $2,500-$5,000 on a $250,000 contract with excellent credit, up to $12,500-$25,000 below 620. The surety sets the final price.
- Timing: Same-day submission; most quotes within one business day.
North Dakota public works bonding at a glance
- Bond threshold
- $250,000
- Controlling statute
- N.D.C.C. § 48-01.2-10
- Performance bond amount
- At least 100% of contract price (one bond covers performance and payment)
- Payment bond amount
- At least 100% of contract price (one bond covers performance and payment)
- Claim notice (sub-tier claimants)
- A person with a direct contract with a subcontractor but no contractual relationship with the bonded contractor has no claim on the bond unless it gives written notice to the contractor within 90 days from the date it completed its contribution, stating with substantial accuracy the amount claimed and the name of the person for whom the contribution was performed. Served by registered mail addressed to the contractor at any place it maintains an office, conducts business, or has a residence (48-01.2-11). No preliminary notice requirement stated.
- Deadline to sue on the payment bond
- A claim on which suit is not commenced within one year after completion and acceptance of the project is barred against the contractor and surety (48-01.2-12). Earliest: a claimant may sue if not paid in full within 90 days after completing its contribution of labor or materials (48-01.2-11).
- Federal jobs in North Dakota
- Miller Act (40 U.S.C. § 3131): bonds on federal contracts over $150,000
Source: N.D.C.C. § 48-01.2-10 and the claim statutes cited below. Requirements change; confirm the current statute and your contract before bidding.
Getting paid: North Dakota payment bond claims
On public work you cannot file a mechanics lien against the property, so the payment bond is the security for unpaid labor and materials. Miss a deadline and the claim can be lost.
Notice
A person with a direct contract with a subcontractor but no contractual relationship with the bonded contractor has no claim on the bond unless it gives written notice to the contractor within 90 days from the date it completed its contribution, stating with substantial accuracy the amount claimed and the name of the person for whom the contribution was performed. Served by registered mail addressed to the contractor at any place it maintains an office, conducts business, or has a residence (48-01.2-11). No preliminary notice requirement stated.
Lawsuit deadline
A claim on which suit is not commenced within one year after completion and acceptance of the project is barred against the contractor and surety (48-01.2-12). Earliest: a claimant may sue if not paid in full within 90 days after completing its contribution of labor or materials (48-01.2-11).
Statute text: source 1. General information, not legal advice.
What a North Dakota performance bond costs
The premium is a percentage of the contract price, and the performance and payment bonds on a public job are usually priced together. Here is the math on a $250,000 contract, the size where North Dakota's bond requirement starts:
North Dakota performance bond cost by credit profile
Based on a $250,000 Contract bond amount
- Excellent (750+)Rate: 1-2%$2,500-$5,000
- Good (680-749)Rate: 2-3%$5,000-$7,500
- Fair (620-679)Rate: 3-5%$7,500-$12,500
- Below 620Rate: 5-10%$12,500-$25,000
Illustrative ranges. Final pricing is set by the issuing carrier based on credit, financial statements, experience and the job.
How to get bonded for a North Dakota public job
- 1.Check the bid documents for the bond forms, amounts and any bid bond the owner requires at bid time.
- 2.Apply once for the program: company financials, work in progress, and the job details. Smaller jobs can often be underwritten on credit alone.
- 3.On award, we place the performance and payment bonds with a Treasury-listed carrier on the owner's form; you pay only when the bonds are issued.
North Dakota performance bond questions
Does North Dakota require a performance bond on public projects?
Yes. North Dakota's Little Miller Act (N.D.C.C. § 48-01.2-10) requires contractors on covered public works contracts to post performance and payment bonds. The trigger: $250,000. Private owners and lenders can also require one by contract.
What is the North Dakota Little Miller Act threshold?
$250,000. North Dakota's $250,000 trigger is higher than the federal Miller Act's $150,000, so a public job between the two amounts can need bonds if it is federally funded but not under state law.
How much does a performance bond cost in North Dakota?
Premiums are a percentage of the contract price and depend mainly on the contractor's credit, financials and experience. On a $250,000 contract, typical ranges run about $2,500-$5,000 for excellent credit up to $12,500-$25,000 below 620. The issuing carrier sets the final price.
What is the deadline to sue on a North Dakota payment bond?
A claim on which suit is not commenced within one year after completion and acceptance of the project is barred against the contractor and surety (48-01.2-12). Earliest: a claimant may sue if not paid in full within 90 days after completing its contribution of labor or materials (48-01.2-11). (N.D. Cent. Code §§ 48-01.2-10 to 48-01.2-12). Confirm the deadline against the statute and your contract before relying on it.
Do subcontractors have to give notice before a North Dakota payment bond claim?
A person with a direct contract with a subcontractor but no contractual relationship with the bonded contractor has no claim on the bond unless it gives written notice to the contractor within 90 days from the date it completed its contribution, stating with substantial accuracy the amount claimed and the name of the person for whom the contribution was performed. Served by registered mail addressed to the contractor at any place it maintains an office, conducts business, or has a residence (48-01.2-11). No preliminary notice requirement stated. (N.D. Cent. Code §§ 48-01.2-10 to 48-01.2-12).
Who needs a North Dakota performance bond?
Contractors on public works projects in North Dakota above the statutory threshold. It is required by North Dakota public owners awarding covered public works contracts (N.D.C.C. § 48-01.2-10). The bond amount is performance bond: At least 100% of contract price (one bond covers performance and payment); payment bond: At least 100% of contract price (one bond covers performance and payment).
How do I get a North Dakota performance bond?
Request a quote with the form on this page. A licensed agent submits your application to a Treasury-listed surety carrier; once the carrier issues your bond, file it as the requiring agency directs.
What happens after I apply?
A licensed agent reviews your request and submits it to the carrier; most quotes come back within one business day. The carrier decides approval and the final premium, and you pay only when your bond is issued.
Estimate Your North Dakota Performance Bond Premium
Free calculator — ballpark cost in under 60 seconds, no email required.
Other North Dakota Bonds
Additional surety bonds available in North Dakota
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
Bidding a North Dakota public job?
Instant quotes on qualifying bonds, most others quoted within one business day. No payment until your bond is issued.
Get a North Dakota performance bond quote