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California Performance Bond

California 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 a California Performance Bond?

A Performance Bond California is issued to guarantee the performance on an obligation under a contract or other construction agreement for contractors located in the state of California. The bond is usually paired with a Payment Bond and is common in the construction industry.

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Bonding Solutions | California Performance Bond
Bonding Solutions | California Performance Bond
Bonding Solutions | California Performance Bond

What is the Cost of a Performance Bond?

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 pay between 1 to 3% of the bond amount. California 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).

How to Buy Performance Bond in California?

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 California?

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 in California?

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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