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Ohio Construction Surety Bonds

Contractors in Ohio often need construction surety bonds before signing contracts or finalizing project awards. Surety Bonds Agent helps make the bonding request clear and manageable. Apply today for a fast, free quote.

Contact Us for a Free Construction Bond Quote

It’s easy with our simple 3-step process:

  1. Apply Online
  2. Get Quote
  3. Receive Bond
about bond type

What Is an Ohio Construction Bond?

Construction project owners often have a great deal of money at stake. They rely on their chosen contractors to comply with all legal and contractual requirements, as violations can be very costly. Ohio construction bonds protect the owners of public works or private construction projects from the monetary losses that can occur when violations occur. Construction bonds require contractors to comply fully with applicable statutes and the terms of the construction contract and obligate them to compensate project owners for losses caused by noncompliance.

img What Types of Ohio Construction Bonds May Be Needed?

In Ohio, there is no statewide licensing of contractors. However, contractors may be subject to local licensing laws that require them to furnish contractor license bonds to the specific licensing authority.

Ohio’s “Little Miller Act,” the state’s version of the federal Miller Act, requires contractors awarded state-funded projects to furnish both performance bonds and payment bonds, each for 100% of the contract value. There is no minimum threshold contract value for these bonds to be mandatory. The statute also requires contractors in competitive bidding situations to provide a bid bond.

The Little Miller Act doesn’t apply to private construction projects. But, private project owners can also require contractors to provide bid, performance, and payment bonds.

Other construction bonds that contractors operating in Ohio may need to purchase include:

  • Maintenance bonds
  • Contractor license bond
  • Subdivision/site improvement bonds
  • Supply bonds
  • Solar decommissioning bonds
  • Right of Way bonds
img How Does an Ohio Construction Bond Work?

Every construction bond is legally binding on its three parties, known as the bond’s:

  • obligee—the project owner,
  • principal—the contractor, and
  • surety—the bond’s guarantor.

When a claim is received, the surety will determine whether it is valid. If it is, the contractor is legally obligated to pay it. Here’s where things get interesting. As the bond’s guarantor, the surety will pay a claim initially on the principal’s behalf. This ensures that the claim is resolved promptly and gives the principal some time to come up with the funds to cover the claim. The principal must repay the debt according to the surety’s credit terms or risk being sued by the surety to recover the money.

costs

How Much Does It Cost?

Most construction bonds are subject to underwriting to establish the premium rate for the given bond applicant. The primary underwriting concern is the risk of the surety not being repaid for the credit extended in paying a claim on the principal’s behalf. The principal’s personal credit score is the accepted measure of that risk.

A high credit score is evidence of financial responsibility, so the risk to the surety is low, and the premium rate will be low as well. Conversely, a low credit score is a strong indicator of higher risk, which warrants a higher premium rate.

The premium rate for a principal with good credit usually is in the range of 1% to 3%.

step by step guide

How Do Ohio Construction Bonds Work?

  • Choose Your Bond Type

    Select the bond you need — commercial, contract, or any specialized bond. We help you find exactly what is required in your state.

  • Submit a Quick Application

    Complete a short online form. It only takes a few minutes, with no extra paperwork or long verification steps.

  • Get Approved & Receive Your Bond

    Get fast approval and receive your bond instantly by email. Your document is ready to use right away.

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Why Work With Us?

Easy Application Process

Simply fill out our convenient online application form to get started.

Extensive Carrier Network

We work with a wide range of carriers to provide many options to our clients.

Competitive Rates

As an independent agency, we can leverage our carrier network to find the most competitive rates for the bonds you need.

Quick Turnarounds

We work to get you bonded as quickly as possible, often in 24 hours or less.

Exceptional Service

Our experienced surety bond agents provide personalized assistance to help you understand your bonding requirements and options.

Call us Today!

And get a free consultation.

866-362-6637
who we work with

Our Insurance Company Partners Nationwide

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Testimonials

What our customers say about us

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Contractor

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Small Business Owner

Super easy process. I found the bond I needed in minutes and received the approved document the same day. Great experience overall.

Emily R., Business Owner
Oberman & Oberman

The application was fast, the support team was responsive, and the pricing was clear. Very smooth and professional. Everything was explained clearly, and I appreciated how quickly I received my bond.

Jason M., Contractor
Oberman & Oberman

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Request an online quote today! Or speak with one of our knowledgeable surety bond agents about the commercial bonds you are interested in.

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