Bond cost index
Performance Bond Cost
A performance bond guarantees that a contractor will complete a project on the terms of the contract. If the contractor defaults, the obligee can call the bond and the surety arranges completion or pays the loss up to the bond amount.
How much does a performance bond cost?
Bond amount usually equals 100 percent of the contract value. Premium runs about 1 to 3 percent of the bond amount per year for well-qualified contractors, scaled by contract size and financial strength. Premium for a 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 usually equals 100 percent of the contract value. Premium runs about 1 to 3 percent of the bond amount per year for well-qualified contractors, scaled by contract size and financial strength.
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.