Bond cost index
Payment & Performance Bond Cost
Payment and performance bonds guarantee a contractor will complete a project per contract terms and pay subcontractors and suppliers.
How much does a payment & performance bond cost?
Bond amount typically equals 100 percent of the contract value. Premium runs 1 to 3 percent of bond amount for well-qualified contractors. Term matches the contract duration. Premium for a payment & performance runs about 1% to 15% of the bond amount per year, set by underwriting based on credit and financials.
Data as of 2026-06-17. Methodology v1.
Bond amount typically equals 100 percent of the contract value. Premium runs 1 to 3 percent of bond amount for well-qualified contractors. Term matches the contract duration.
The bond amount for this bond is set by the obligee on a case-by-case basis rather than by a statewide statute, so there is no per-state table. These are estimated ranges, not quotes. Final premium is set by underwriting and depends on the bond amount, your credit and financials, the bond class, and the obligee. A firm number takes a short application.