- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If a project owner requires a payment bond, send us the contract or notice of award and the bond form. We’ll check the amount and form and tell you what the surety needs for a quote.
A payment bond is a surety bond that guarantees the contractor will pay covered subcontractors, laborers, and suppliers on a bonded construction project. If the contractor does not pay and a claimant has a valid claim under the bond, the surety can pay up to the bond amount.
Federal construction contracts exceeding $150,000 require payment and performance bonds under the Miller Act, with limited waivers, according to Federal Acquisition Regulation 28.102-1. States and many local governments have their own rules for public work.
Private owners, lenders, and general contractors can require payment bonds too. The contract and bid documents tell you what is needed.
The people the bond covers, usually subcontractors, laborers, and suppliers who were not paid, can make a claim. Who is covered and how many tiers down depends on the law and the bond form.
Claim rights come with strict notice and timing rules. A claimant should check the law and bond form right away.
A payment bond is about paying covered parties. A performance bond is about completing the contract. Many contracts require both.
See Performance Bonds for the performance side.
Payment bonds are generally priced with a rate applied to the contract amount, and they are often issued together with a performance bond. The rate depends on the contractor, the project, and the surety.
We cannot quote a rate until we see the contract and your information.
Usually. Credit is one part of underwriting. Larger bonds also look at company financials, work in progress, and experience.
If credit or financials are not perfect, tell us up front. The options depend on the bond size and the surety markets available.
Send us what you have. The most useful items are:
It depends. A smaller bond with a complete file can move more quickly. A new account, a larger job, an unusual form, or a request that needs financial statements can take longer.
Send the contract as soon as you have it.
If this is not the bond you were asked for, these pages may help.
Yes for public work. States and local governments set their own thresholds, forms, and claim rules, and federal work follows federal rules. Do not assume one bond form fits every project.
Send us the contract, notice of award, or bond form. We’ll tell you what the surety needs next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
