When planning a construction or service contract, understanding performance bond pricing is essential. The cost of a performance bond typically ranges between 0.5% and 3% of the total contract value, depending on the applicant’s credit score, business history, bond amount, and project scope. Well-established contractors with strong financials may enjoy lower rates, while new businesses might face higher premiums. Additionally, the surety company evaluates project risk, contractor reliability, and contract terms before determining final pricing. It’s crucial to compare quotes from multiple providers to get the best deal. With accurate cost projections and sound planning, performance bond pricing becomes a manageable part of ensuring contract completion and protecting project stakeholders.
Popular Posts
