Notary Bond Application:
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Performance and Payment Bonds
Performance and payment bonds help contractors meet project requirements and give the project owner confidence that the job will be completed and subcontractors or suppliers will be paid. Jet makes can offer same-day bid bonds, online approval options for qualifying projects and account programs for contractors who bid public work consistently.
24hr
Approval
3%
Starting Rates
No Cost
Bid Bonds*
50
States
*Most bid bonds are issued at no cost when the Performance & Payment bond is placed through Jet.
How Much will my Performance Bond Cost?
The bond's costs vary by project size and contractor qualifications. Use our estimator to get a quick idea, then request the exact rate by providing the bid or contract details.
What determines bond approval?
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Owner & Spouse Credit
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Project Size
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Contract Terms
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Financial Viability
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Previous Experience
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Current Work
What Bonding Options Work for Me?
Jet's Quick Bond Program
Need a performance or payment bond for a project $500,000 and under? Jet’s Quick Bond Program is built for contractors who need a faster, simpler approval path without setting up a full bonding account.
This option is often a good fit for contractors who are new to bonded work, only need bonds occasionally, or have a specific project up to $1,000,000.
Jet's Account Program
If you regularly bid bonded work or need bonds for larger contracts, over $2,000,000+, Jet’s Account Program helps establish ongoing bonding capacity. This type of account includes a more detailed underwriting review so Jet can support your current project and future bonding projects as your company's portfolio grows.
| Risk Category | First $100,000 | Next $400,000 | Over $500,000 |
|---|---|---|---|
| Ultra-Low Rate | 1.5% | 1% | 0.5% |
| Average Rate | 2.5% | 2% | 1.5% |
Example cost for a $5,000,000 Contract Bond: $1,500 + $4,000 + $22,500 = $28,000
How do I apply for a Performance or Payment bond?
Applying for the bond starts with these 4 items.
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Company Information
Details about your construction business.
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Contract or Bid Documents
Upload the awarded contract or bid invitation.
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Current Work on Hand
A review of previous, active & upcoming projects.
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Financial Information
Financial review for project capacity.
After I Apply, What Happens Next?
Once we receive all your information:
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Bid Bonds: Qualified applications are approved the same business day.
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Performance Bonds: Qualified applications receive a final decision within 24 hours.
When Is a Performance Bond Required?
Federal, state, and local governments require a contract bond depending on the project size. Per The Miller Act, any construction project awarded by the federal government and valued at $100,000 or greater requires a Performance Bond and a Payment Bond. Many states have adopted similar requirements. Businesses in the private sector may also make contract bonds mandatory to ensure their protection from financial losses due to the contractor’s failure or refusal to complete the projects per the contract.
Without a surety bond in place, there is only essentially the word of the contractor that the project will be completed per the agreed-upon contract. Sure, the hired contractor that failed to do the job as specified could make amends or fix outstanding problems but could (with no effort) do nothing and stick it to the project owner.
This, of course, is not good for reputation and there will be court summons in short order, but restitution is still not a guarantee for the project owner’s damage. If there was only a way to involve a third-party financier—enter Jet Insurance Company as the surety to back the contractor and provide the financial guarantee that project owners demand.
How to Get a Contract Bond
Unlike other surety bonds, the contract bond process is a bit more arduous—keep in mind that Jet has simplified this process to get you in and out as quickly as possible.
First, a Bid Bond must be obtained in most cases. This is at no cost to the contractor, but it allows the hiring entity to see that a surety company will back the contractor with a Performance Bond should they be awarded the contract. Our application accounts for this. Click below to get a bid bond started, should take only a couple of minutes:
Once you’ve been approved for a rate, it will be delivered to you via email where you can click the link and purchase the Performance Bond directly online. The digital bond form and your receipt will be available to download after successful payment.
If you have any questions or updates regarding the bond status, you can reach us by email at [email protected] or by phone at (855) 470-4341.
Types of Construction Bonds Related to Performance Bonds
Aside from the common Performance Bond (Contract Bond) used to guarantee the project duties are completed according to the contract terms, there are several bond types contractors may need prior to working on any project.
Contractor License Bond - some states require a Contractor Bond to be on file for the entire duration the contractor is licensed and operating. For example, the California Contractors State License Board (CSLB) requires a $25,000 surety bond for all contractors. California has several other bond requirements for contractors, depending on the contractor’s classification and other factors.
Bid Bond - To even get to the point of needing a Performance Bond, a Bid Bond is often required. The Bid Bond is of no cost to the contractor—it shows that should they be awarded the contract, they have a surety company willing to write their Performance Bond and therefore enter into a contract with the obligee.
Payment Bond - A Payment Bond is often required alongside a Performance Bond. While the Performance Bond is used to ensure all work is completed according to the contract, the Payment Bond helps reassure the obligee that all materials and labor will be paid.
Subdivision/Site Improvement Bond - Similar to a Performance Bond, a Subdivision Bond ensures public works improvements will be made by the developer according to the law. The obligee is typically a city or county government. Landowners/developers secure these bonds in situations where improvements involve sidewalks/rights-of-way, streets, sewers, electrical lines, etc.
Maintenance Bond - A separate bond is sometimes required on public projects that provides coverage for defects and faults for a specified amount of time after project completion. Typically, these coverages are included as part of the original contract.
Supply Bond - Supply Bonds are used to guarantee the delivery of materials from the supplier. Contractors should not typically be asked to provide this bond since it relates directly to the supplier.