What is a Performance Bond?
The Contract Performance Bond given by a contractor to an owner, guarantees a contractor will faithfully perform the terms and conditions written in the contract and or bid specifications of a job if they are awarded a job through a bidding process.
How does a Performance Bond Work?
Performance bonds and/or Contract bonds act as a promise between the contractor and the obligee. It is required so that the contractor completes the job in it’s entirely, accordingly to the terms of the contract. If the contractor fails to fulfill their obligation, the obligee may file a claim against the contractor and the contract that was put in place will be terminated. The goal of a Performance Bond is to insure that the work is 100% completed.
How much does a Performance Bond Cost?
The cost of this type of bond is based on the specific cost to complete the job. The cost will be a percentage of the job and is always factored into the bid process. A big factor is determined by the corporate financials and the personal credit report of all owners and spouses. Someone with good credit may pay a lesser premium than a person with poor credit. However, just because someone has poor credit, does not mean we cannot help you. At Universal Service Agency, we strive to find out clients the best rates with the strongest rated carriers to insure you are getting the best bond coverage available.
How do I get a Performance Bond?
You can get Performance Bonds can be acquired by contacting surety bond agents/brokers. Since you’re already here, you can give us a call at 215-646-2400 or Apply Now here.
How to Choose a Bonding Company?
Universal Service Agency offers Surety Service Made Simple. We are the fastest surety only agency in the country, with over 100 years of combined surety experience servicing all 50 states. We exhaust all of our resources to get you the fastest turnaround times and lowest rates. We can help anyone, even clients that may not fit into the standard market. You can get a free quote here or call our bond experts at 215-646-2400.
How long does it take to get a Performance Bond?
Universal can issue bonds the same day an application is received. The amount of time between application and issuance is affected by a number of factors though, including but not limited to, the size of the obligation, the type of bond, and promptness of the premium payment.
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Universal Service Agency is the fastest “surety only” agency in the country, with over 100 years of combined surety experience servicing all 50 states.