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Contract/Construction Bonds


What is a Contract/Construction Bond?

Contract bonds (sometimes called construction bonds) are surety bonds required to guarantee that a contractor will abide by the specifications of a construction job or contract. The bond ensures to the project owner that the contractor will perform the work and pay specified subcontractors, laborers and material suppliers. Surety Bonds Direct is a leading provider of contract bonds nationwide. To learn more about our easy application process, please select the specific type of contract bond needed from the following, or if you are new to contract bonds, see A Beginner's Guide to Contract Bonds to get your bearings:

If the bond is required not for a job but for a license, registration or permit issued by a city, state, county or other local government entity, you may need a Contractor License Bond.

How much does a Contract Bond Cost?

Contract Bond prices vary based on the bond amount and the applicant. Most contact bonds are priced at 2-3% of the bond amount. Request a free, no-obligation quote and one of our bond specialists will look at your specific circumstances.

The party requiring the bond should have specified the bond amount. If not, the bond amount is likely the same as the total contract amount. If you are requesting a bid bond, the bond amount is often only 5-10% of the contract value.

If you'd prefer to speak with one of our bond specialists, please call us at 1-800-608-9950. We can help guide you through the bonding process and identify the lowest cost in the market for your situation.

A Beginner's Guide to Contract Bonds

A Beginner's Guide to Contract Bonds

Various types of contract bonds are required for construction and maintenance contracts, especially for government work.

Everything You Need to Know About the Surety Underwriting Process

Everything You Need to Know About the Surety Underwriting Process

What can you expect from the surety bond underwriting process, who are the surety bond parties, and how do the various elements of the process interact?

Types Of Construction Bonds: The 8 Bonds And Insurance You Must Understand

Types Of Construction Bonds: The 8 Bonds And Insurance You Must Understand

Let's look at the 8 type of construction bonds and insurance because construction is a heavily regulated industry requiring many surety bonds and insurance.

Surety Bond vs. Letter of Credit: Everything You Need to Know

Surety Bond vs. Letter of Credit: Everything You Need to Know

Surety bonds and letters of credit help create accountability between the various parties of a construction contract. They protect project owners, subcontractors, suppliers, and even contractors themselves from losses resulting from breaches of contract.

Understanding the Role of Surety Bond Companies

Understanding the Role of Surety Bond Companies

What role do surety bond companies play in the business and legal transactions that keep our world running?

Understanding the 3-Party Agreement of Surety Bonds

Understanding the 3-Party Agreement of Surety Bonds

Sureties, obligees, principals... what do all of these surety bond terms mean?

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