• All About Surety Bonds
  • What Are Surety Bonds
  • Surety Bond Types
  • Obtaining a Surety Bond
  • Cost of a Surety Bond
  • Bad Credit Surety Bond Program
  • Performance Surety Bonds
    • What are Performance Bonds
    • Performance Bond Requirements
    • Typical Performance Bond Costs
  • License Surety Bonds
  • Surety Bonds at Work
  • Importance of Surety Bonds
  • Ten things about Surety Bonds
  • The Miller Act
• Surety Bond Services
  • Services
  • Applications and Forms
  • Contact Us
  • About Us
• Commercial Surety Bonds
  • Court Bonds
    • Appeal Surety Bonds
    • Conservator Surety Bonds
    • Executor Surety Bonds
  • License & Permit Surety Bonds
    • Collection Agency Surety Bonds
    • Conduct Surety Bonds
    • Contractor License Surety Bonds
    • Cosmetology Surety Bonds
    • DMEPOS Surety Bonds
    • Driving School Surety Bonds
    • Health Club Surety Bonds
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    • Mortgage Broker Surety Bonds
    • Mortgage Lender Surety Bonds
    • Motor Vehicle Dealer Surety Bonds
    • Pest Control Surety Bonds
  • ARC Surety Bonds
  • Farm Labor Surety Bonds
  • ICC/FMCSA Surety Bonds
  • IFTA Surety Bonds
  • Lease Guarantee Surety Bonds
  • Liquor Tax Surety Bonds
  • Lost Title Surety Bonds
  • Lottery Surety Bonds
  • Reclamation Surety Bonds
  • Sales Tax Surety Bonds
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  • Utility Deposit Surety Bonds
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• Contract Surety Bonds
  • Bid, Payment and Performance
  • Construction Surety Bonds
  • Subdivision Surety Bonds
  • Warranty Surety Bonds
• Fidelity Bonds
  • Business Services Fidelity Bonds
  • Dishonesty / Fidelity Bonds
  • Janitorial Services Fidelity Bonds

There are many factors that go into determining the cost of a Performance Bond, such as (but not limited to) the amount, contract type, State, Surety Company’s filed rate, Principal’s credit and / or financial standing, past job history of the Contractor, current work on hand, and other underwriting factors as well as any fees charged by the agent or broker.

Rates for Performance Bonds can vary depending on the qualification of the Contractor, as well as type and size of the contract. The average rates and costs can range from 1% - 5%. Keep in mind that 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.

Commissions are paid to suitably licensed agents and agencies when issuing a Performance Bond in many cases. A commission is a predetermined percentage of the premium as per an agency agreement between Surety and agent or between broker or MGA and agent (sometimes both).

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. In addition, there are paid producers who review files and coordinate with Principals, Sureties, and agents during the processing of Bond files. These costs in addition to multiple other expenses contribute to the need for charging fees in certain instances.

Feel free to let our Contract Surety experts help with any questions you may have on 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 the client time and headache in the Bonding process while potentially opening up a new relationship between Contractor and Surety. Give us a call today for more information on Performance Bonds and associated costs.