What does a surety bond cost?
Bid bonds cost about $100 per bid, about $250 for unlimited bids for the year or free of charge for larger clients.
For the rest of the contract bonds, there is no one size fits all cost. Performance, payment, and supply bond costs are based on a percentage of the total contract amount, which varies by:
- Your financial strength
- Type and scope of work
The obligee will pay for the final bond as long you include the costs in your bid specifications.
Subdivision bond pricing is a small percentage of the bond amount.
Maintenance bonds are typically free, unless the bond is for 2 years or more.
Service contract bond costs can range from only a small percentage of the service contract amount, to 100% of the contract amount. They are underwritten much differently than construction contract bonds.
Appeal, probate and guardianship surety bond rates are based on a percentage of the bond amount. Appeal bond rates are low in comparison to the other types, but require 100% collateral in most cases, which can be avoided for very strong applicants (e.g. Fortune 500 Companies).
Probate bonds sometimes have a sliding scale for cost, and must renew each year until the estate assets are completely disbursed. Likewise, guardianship bonds can also have a sliding scale, and must renew each year until the fiduciary's responsibilities cease. Apply for a court bond directly on our website to get an exact price.
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Transcript: What Do Surety Bonds Cost?
Woman: I need a surety bond, but I have no idea how much they cost.
JW: Surety bond costs vary greatly based on the size of the bond, the type of bond, and the applicant.
Woman: That makes sense, but can you just give me an idea of costs?
JW: I can give you a rough idea, but to determine your actual costs, you'll need to apply online, as bonds are not a one size fits all product. What do you need the bond for?
Woman: I actually need two. One is required to obtain my contractor's license and I need the other for a specific public job I want to do.
JW: Ok...License bonds are usually pretty small and based strictly on your personal credit. The better your credit, the lower the rate. Your best bet is to use our free estimate tool to see a range of costs. It will calculate the ranges you're looking for on your specific bond type and amount.
Woman: Sounds good, but what about the bond I need for the public works contract?
JW: You can use our estimate tool for that, but I'd also recommend you check out our video "What do bid and performance bonds cost?". There is quite a bit more to them than a simple estimate tool can provide and I think you'll find the video very informative.
Woman: Great thanks! I'll check it out right now.
"I definitely recommend their services."