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California Performance and Payment Bonds

Contractors in California need performance and payment bonds for many public and private construction contracts. Surety Bonds Agent serves all 50 states with clear guidance and responsive service. Apply online for a performance and payment bond quote.

Contact Us for a Free Performance & Payment Bond Quote

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

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

What Are California Performance & Payment Bonds?

There is a lot at stake for project owners, both public and private. Performance and payment bonds provide protection against the financial losses that can result when contractors fail to complete a construction job in accordance with the construction contract and/or don’t pay their subcontractors and suppliers. The bond protects project owners by:

  • Legally obligating the general contractor to abide by all applicable laws and regulations and the terms of the construction contract
  • Providing compensation when valid claims for damages are filed
  • Preventing mechanic’s liens on the property

A California performance and payment bond combines the protection afforded by both performance bonds and payment bonds in a single surety bond.

img Who Needs One?

Every state has its own version of the federal Miller Act that requires performance and payment bonds for federally funded construction projects. In California, performance and payment bonds are required for any public works projects valued at $25,000 or more. The primary contractor on such a project must furnish a payment and performance bond in an amount equal to half the value of the contract.

Increasingly, private project owners also are requiring their contractors to provide a performance and payment bond.

img How Does a Performance & Payment Bond Work?

In the language of surety bonds, the three parties to a California performance and payment bond are known as the obligee, the principal, and the surety.

  • The project owner requiring the bond is the obligee,
  • The contractor purchasing the bond is the principal, and
  • The bond’s guarantor is the surety.

In guaranteeing the bond, the surety guarantees to lend funds to the principal to pay a claim. The surety is indemnified against legal responsibility for the claim amount. The legal obligation to pay valid claims belongs entirely to the principal.

When a claim is received, the surety will determine whether it is valid. If it is, the surety will pay it on behalf of the principal as an extension of credit to the principal. This creates a debt the principal must pay back to the surety. Not repaying it means the surety can take legal action to recover the funds.

costs

How Much Does It Cost?

The annual premium for a California Performance and payment bond is calculated by multiplying two values:

  • the required bond amount set by the obligee, and
  • the premium rate determined by the surety through underwriting.

Underwriting aims to assess the risk of the surety not being repaid for claims paid on behalf of the principal. The primary measure of that risk is the principal’s personal credit score.

A principal with a high credit score does not pose much risk to the surety and usually is assigned a low premium rate. Someone with lesser credit presents a greater risk of non-repayment and therefore pays a higher premium rate.

The premium rate for a well-qualified principal usually is in the range of 1% to 3%.

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Choose Bond by States

We proudly serve all 50 states, offering a full range of surety bonds. To buy surety bonds online:

  1. Choose your state
  2. Choose the bond type you need
  3. Apply online to request a free quote

There’s no obligation, and we can often help you get bonded in 24 hours or less.

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step by step guide

How Do California Performance and Payment 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.

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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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