Bad Credit Approved • Same-Day Quotes • Contracts up to $10MBad Credit Approved • Same-Day Quotes • Contracts up to $10M

Looking for a trusted performance bond provider? BondsExpress has helped contractors get bonded since 1965.

✓ 24-hour approval for qualified contractors
✓ Bad credit program available
✓ A+ BBB Rating since 1965

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📞 Call 1-800-331-5453

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What is a Performance Bond?

A performance bond (construction performance bond) guarantees that you (the contractor) will complete the construction project according to:

  • Contract specifications
  • Agreed timeline
  • Quality standards
  • Budget requirements

Performance bonds protect project owners from contractor default, delays, substandard work, or project abandonment. Contractors often need bid, payment, and performance bonds together when bidding on government or commercial projects. They are commonly required on commercial, government, and infrastructure projects where the owner needs financial assurance that work will be completed as agreed.

Three Parties Involved:

  • Principal (You – the contractor)
  • Obligee (Project owner)
  • Surety (the guarantor)

Performance Bond vs Payment Bond

Performance Bond Payment Bond
Purpose Guarantees project completion Guarantees subcontractors/suppliers get paid
Who It Protects Project owner Subcontractors, laborers, suppliers
When Required When awarded a contract Usually required alongside performance bond
Cost Typically bundled together at ~3% combined rate

Most projects require both bonds together. Learn more about bid, payment, and performance bonds.

When Do You Need a Performance Bond?

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Commonly Required In

  • Commercial construction
  • Government/municipal projects
  • Infrastructure projects
  • Large renovation projects
  • Subcontractor work
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Project owners require performance bonds to

  • Ensure project completion
  • Protect their investment
  • Maintain project timeline
  • Guarantee quality work

Can You Get a Performance Bond with Bad Credit?

YES – BondsExpress specializes in bad credit performance bonds.

Our Bad Credit Performance Bond Program

Approval based on:

  • Contractor experience and financial statements
  • Project history and success rate
  • Collateral options available

Available For:

  • Credit scores below 650
  • Past bankruptcies
  • Past Tax liens or judgments
  • Limited bonding history
  • New contractors

Program Options:

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Standard Bad Credit Program

  • Rates: 3% – 15% of bond amount
  • Collateral may be required
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SBA Bond Guarantee Program

  • For small contractors with bad credit
  • High approval rates
  • Competitive pricing

Apply with Bad Credit

Pricing Breakdown

How Much Does a Performance Bond Cost?

Performance bond premiums typically range from 3% to 15% of the total contract amount, based on your credit, financials, and project risk. Most often performance and payment bonds are issued together, in this case the combined rate is 3% for both bonds. If you need a bid bond before winning the project, bid bonds are always issued free of charge.

Example pricing:

  • $100,000 contract: Performance bond cost is approximately $3,000 to $15,000
  • $10,000 contract: Performance bond cost is approximately $300 to $1,500

The project owner typically pays for the performance bond as part of the overall project cost, though contractors often include this expense in their bid.

Pricing by Credit Tier:

Standard Rate

Rate: 3%

Credit Score: 600+

Bad Credit (Below 600)

Rate: 5% – 15%

Note: Collateral may be required.

Collateral may be required

Factors Affecting Cost:

  • Credit score
  • Financial strength
  • Industry experience
  • Project type and size
  • Claims history

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FAQ – Performance Bonds

Where can I get a performance bond?
Contact a licensed surety bond agency like BondsExpress. We’re licensed in all 50 states and specialize in performance bonds for contractors of all sizes. You can also learn more about our full range of bid and performance bonds for contractors.
How long does it take to get a performance bond?
With complete documentation, 24-48 hours for standard approvals. Bad credit applications may take 3-5 business days.
What happens if I can’t finish the project?
The surety investigates, then either hires another contractor to complete the work or compensates the project owner. You are liable to repay the surety.
Can claims affect my future bonding?
Yes. Claims make it harder and more expensive to get future bonds. It’s critical to avoid defaults and complete all bonded projects.

How much does a $100,000 performance bond cost?
For a $100,000 contract, a performance bond typically costs between $3,000 and $15,000 annually, depending on your credit score and experience. Contractors with good credit (650+) usually pay around 3% ($3,000), while those with bad credit may pay 10–15% ($10,000–$15,000).
Who pays for a performance bond?
The contractor typically pays for the performance bond upfront, but this cost is usually included in the project bid and ultimately covered by the project owner. The bond premium is considered a normal cost of doing business on bonded projects.
How long is a performance bond valid?
A performance bond remains valid for the duration of the construction project, including any warranty period specified in the contract. Most performance bonds cover 1–2 years after project completion for warranty claims.
Do you get your money back on a performance bond?
No, a performance bond premium is not refundable. Unlike insurance, the premium you pay is a fee for the surety’s guarantee. However, if no claims are made, your bond rate may decrease on future projects.
How does a 10% performance bond work?
A 10% performance bond means you pay 10% of the contract value as your bond premium. For example, on a $500,000 project, a 10% rate would cost $50,000. This higher rate typically applies to contractors with bad credit, limited experience, or high-risk projects.
How do I get a performance bond?
To get a performance bond:

1) Apply online or call us at 1-800-331-5453.
2) Submit your financial documents (business financials, work history).
3) Receive your quote within 24 hours.
4) Once approved, your bond is issued and you can begin work.