Bid, Construction, and Payment Performance Bonds
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If you work in the construction industry, or on other projects that use a similar bid-selection process, you’re likely aware of the risks that come with the nature of this type of work, but you may not be aware of the different kinds of bonds that your state may require for contract or construction work.
You need a partner who can help you navigate these challenges so you can focus on your business. NFP can make securing your bid, actual construction and payment performance bonds easy.
These surety bonds – whether they are bid bonds, construction bonds or payment performance bonds – function to protect consumers and ensure that work or payment will be completed as agreed to at the outset of construction or project.
You are the expert in your industry — let NFP help you secure the surety bond you need to stay compliant.
Helping You Meet State Requirements
- A bid bond serves as a guarantee to the job owner that you as a contractor are stable in your business operations and have the financing and all the necessary resources to undertake the kind of project specified in the contract.
- A construction bond is a type of surety bond used by investors to protect themselves against adverse events that may prevent or disrupt the completion of a project.
- Payment performance bonds provide a kind of guarantee that a construction project will be satisfactorily completed, and that a contractor will live up to all the terms specified in the bond to the satisfaction of the project owner.
Connect with us to learn more about which bid, construction and payment performance bond your business needs.
Apply Today
If you work in the construction industry, or on other projects that use a similar bid-selection process, you’re likely aware of the risks that come with the nature of this type of work, but you may not be aware of the different kinds of bonds that your state may require for contract or construction work.
You need a partner who can help you navigate these challenges so you can focus on your business. NFP can make securing your bid, actual construction and payment performance bonds easy.
These surety bonds – whether they are bid bonds, construction bonds or payment performance bonds – function to protect consumers and ensure that work or payment will be completed as agreed to at the outset of construction or project.
You are the expert in your industry — let NFP help you secure the surety bond you need to stay compliant.
Helping You Meet State Requirements
- A bid bond serves as a guarantee to the job owner that you as a contractor are stable in your business operations and have the financing and all the necessary resources to undertake the kind of project specified in the contract.
- A construction bond is a type of surety bond used by investors to protect themselves against adverse events that may prevent or disrupt the completion of a project.
- Payment performance bonds provide a kind of guarantee that a construction project will be satisfactorily completed, and that a contractor will live up to all the terms specified in the bond to the satisfaction of the project owner.
Connect with us to learn more about which bid, construction and payment performance bond your business needs.
Frequently Asked Questions
Bonds are necessary prerequisites for any project, as many things can go wrong in a massive construction project. It is of paramount importance that projects of sizes, like large government and public works projects, acquire bonds. Contact us today to learn more about what bonds your project may need.
There are several factors that affect the total bond amount – such as the size of the project and the financial status of the applicant – but typically, a contractor can anticipate that a surety company will impose a charge of roughly 1% of the total contract value as the cost of a bond itself.
All construction business owners and contractors seeking to acquire their necessary bonds should consider contacting NFP, the nation's largest and most reliable surety company in this country. Authorized to issue all bond types in each of the 50 states, we can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.