On a $3.5m project, is it too high for prime contractor to require me as a sub to carry a surety bond at 100% of the project cost?
It looks like you’re confusing the California $15K license bond with a performance bond. These 2 are very different. The performance bond is generally in the amount of the total contract price because it’s guaranteeing that you’ll perform all of the work in the contract. If you don’t, the bond will pay the GC or owner to complete your work and then seek reimbursement from you for any money they have to pay out. The cost of the premium for the performance bond depends varies from bonding company to bonding company and also on how solvent you are, and your prior bonding experiences. It’s a good idea to check out the cost for the performance bond ahead of time so you can add the cost to your bid.
If you’re not going to provide the performance bond, you’ll need to delete this from your subcontract if they agree to accept your bid without it.