Bidding on project right now which is a residential gut, remodel and addition. Price of project is going to be about 300K plus. What is the price of the bond needed for this project?
1 reply
Jan 13, 2022
This is a question for a bonding agent, not a lawyer. However, the premium for most payment/performance bonds is in the range of1-2% of the contract price. Obviously, each surety may vary depending on the financial condition of contractor applying for a bond. They may also ask the contractor to post cash collateral with them in the amount of the contract price so that the surety is guaranteed to never sustain a loss, but again that will vary from surety to surety and contractor to contractor.