The price of a Performance Bond will vary from contract to contract. There are many variables involved when determining the final rate charged for a Performance Bond. Because of the variability of the factors involved, the rates for a specific bond amount can vary widely.
There are many factors that go into determining the cost of a Performance Bond, such as (but not limited to):
Rates for Performance Bonds can vary depending on the qualification of the Contractor, as well as type and size of the contract. The rate paid is typically a percentage of either the contract amount or bond amount. The average rates and costs can range from 1% - 5%. These are only averages, whereas, a highly qualified Contractor may obtain lower Bond rates compared to a Contractor with credit issues or financial deficiencies. Viking Bond Service, Inc. will always offer the program that is best suited for the Contractor at the lowest rate possible.
In some cases additional fees may be charged for a surety bond. Fees are charged by agencies or brokers in some cases to supplement or replace commissions. In many instances, small commissions must be split between agencies, brokers, and other licensed third parties during the processing of a single Bond file. Basic operating costs and overhead, for instance; overnight fees, charges for credit reports, long distance faxes and phone calls, may contribute to fees charged. There are paid producers who review files and coordinate with Principals, Sureties, and agents during the processing of Bond files. In addition commissions are paid to suitably licensed originating agents and agencies when issuing a Performance Bond in many cases.
Our Contract Surety experts will help with any questions you may have regarding the cost of a Performance Bond or any other type of Bond. We can generally provide an idea of the pricing as well as any other requirements that the potential Surety may have. This provides an opportunity to save time and headaches in the Bonding process while potentially opening up a new relationship between the Contractor and Surety. Give us a call today for more information on Performance Bonds and the associated costs.
Viking provides Utility Deposit Bonds nationwide. We provide fast quotes and knowledgeable friendly agents. Learn more here.
Viking writes BMC-84 FMCSA Freight Broker Bonds nationwide. We keep the bonding process simple. Fast quotes. Good and bad credit accepted.
A Medicare Bond is required of some durable medical equipment suppliers who accept Medicare payments. Learn more and get a quote here.
If you need an Auto Dealer Bond, we can guide you every step of the process. Get all the information you need to move forward.