Payment & Performance Bond
American Surety Bonds Agency, LLC provides simplified and fast underwriting for all Payment & Performance Bonds.
What is a Payment & Performance Bond?
A Payment and Performance Bond is a blanket term referring to two separate contract bonds: Payment and Performance. Payment & Performance Bonds, or Final Bonds, are usually required and issued together.
- Payment Bond — Guarantees the Principal will pay all suppliers, subcontractors and material men associated with the project. Usually issued in conjunction with a Performance Bond.
- Performance Bond - Guarantees the Principal will complete the project according to the terms and conditions of the contract. Usually issued in conjunction with a Payment Bond.
What are the underwriting guidelines?
Payment & Performance Bonds are underwritten on the following criteria:
- Contract Amount
- Personal and Corporate Credit History
- Personal and Corporate Net Worth
- Personal and Corporate Assets
- Total Work on Hand
- Previous Experience
- Scope of Work
How much does the bond cost?
American Surety Bonds Agency has many programs in place for Payment & Performance Bonds. Programs start at less than 1% of the contract amount and range upwards depending on the underwriting guidelines.
Contact us today to find out which program you qualify for.
How do I apply for a Payment & Performance Bond?
There are two ways to apply for a Payment & Performance Bond: Fast Track or Traditional Bond Kit.
- Fast Track Application—A Fast Track application can be used for projects or contracts under $250,000. Fast Track applications rely heavily on personal credit history.
Simply complete the Fast Track application and submit with the following items:
- Bond Kit Application—A traditional Bond Kit application can be used for all contract regardless of size or scope of work.
Simply complete the Bond Kit application and submit with the following items:
- Copy of Contract or Bid Specs
Who can I contact for more information?
MM, Senior Underwriter
Are there any other bonds I might need?