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Arizona Performance Bond

Arizona Performance bonds are required when a project owner wants a guarantee that their project or contract will complete on time and to contract specifications.

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What is an Arizona Performance Bond?

An Arizona Performance Bond is issued to guarantee the performance on an obligation under a contract or other construction agreement for contractors located in the state of Arizona. Performance bonds are a type of contract bond and are usually paired with Payment Bonds and Bid Bonds. Typically this bond is required for public service projects.

Call our team today to purchase your next Performance Bond.



Bonding Solutions | Arizona Performance Bond
Bonding Solutions | Arizona Performance Bond
Bonding Solutions | Arizona Performance Bond

How much will a Arizona Performance Bond cost?

Most Performance Bonds are required to cover 100% of the contract amount. The cost for the bond will vary based on bond amount, but you will typically pay between 1 to 3% of the bond amount. Personal financial history and credit scores play into the percentage rate you receive from a surety agency. Arizona Performance bond rates are often time issued on a “sliding scale”. The larger the bond, the lower the rate will get. The rate is based on the financial qualification and experience of the applicant. Performance bond approvals will be base on the capacity (ability to perform the contract), character (credit, reputation, etc.) and capital (financials, cash, working capital).

Bonding Solutions has in-house programs and underwriting authority that allow for approvals with no financials required and no minimum credit score. Apply with us today.

Why are Performace Bonds required in Arizona?

A performance bond protects a project owner by transferring to a surety company the cost of damages resulting from a contractor or company failing to perform the duties of their contract. Simply put, a performance bond assures the completion of a contract or project. 

For this reason, municipalities (federal, state, and local) are required to bond all public work (See the Miller Act ) To protect the project funding (i.e. tax dollars). 

Also, many churches, private owners, and banks require bonding to protect their projects and associated funds. 


How do I get a Performance Bond Arizona?

Depending on the project type and contract amount, different application processes are required for performance bonds. Many requests can be approved with hours, same day. Larger requests may require financial review and more time. Both processes begin by calling or applying here.

Click here to fill out the Contract Bond Request form.

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