Surety Bonds for Government Contractors

For most public construction projects, yes. Federal contracts above the Miller Act threshold require bid bonds for the solicitation phase and performance and payment bonds after award. Many state and local projects have similar requirements. If you're bidding on public work, you almost certainly need a bond.

A bid bond guarantees that if you're awarded the contract, you'll follow through and sign it. A performance bond guarantees that if you're awarded and start the work, you'll complete it according to the contract terms. Bid bonds come first — they're required at the time of bidding. Performance bonds come after award.

Surety carriers set rates based on your company's financial strength, bonding history, and the size and type of the project. The rate is typically expressed as a percentage of the contract value. Because different carriers use different underwriting criteria, the rate you get depends heavily on who you go to. That's why the producer you work with — and their relationships with surety carriers — makes a real difference in what you pay.

Simple bid bonds for smaller projects can often be issued same-day or next-day with a completed application. Larger performance bonds that require full financial underwriting take longer — typically a few days to a week depending on the carrier and the completeness of your financial package. We'll give you a straight timeline when you apply.

Yes. First-time applicants get bonded every day. The underwriting criteria are stricter when you have no bonding history, but it's not a barrier. We work with contractors who are new to bonded work and know how to put together a file that gives you the best shot at approval.

A decline from one carrier doesn't mean every carrier will say no. Different underwriters weigh different factors. If you've been declined elsewhere, tell us — we'll look at your situation and tell you honestly what we can do.