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MMBONDING
How-To

How to Get a Performance Bond

A performance bond is not something you buy off a shelf. It is underwritten. Here is what that involves, what it costs, and how to get one placed for your project.

Illustration for the guide: How to Get a Performance Bond

Where you get one

You get a performance bond through a surety broker, who places it with a surety company. Unlike a quick license bond, it is underwritten on your business, so the path runs through a real underwriter, not an instant checkout. See the full performance bond page for what it guarantees.

What underwriters look at

  • Financials. Your balance sheet, working capital, and sometimes CPA-prepared statements for larger bonds.
  • Experience. Your track record on similar size and type of work.
  • Credit. Personal and business credit factor into the rate and capacity.
  • Work on hand. How much you already have under contract, against your capacity.

What it costs

Performance bond premiums are a percentage of the contract value. Strong files pay the lowest rates; larger contracts, thinner experience, or tougher credit raise it. We quote your specific job rather than a generic rate.

Bidding bigger than your current line?

That is a conversation worth having early. As a broker we build single-job and aggregate capacity over time and shop hard-to-place markets when needed. Start a project intake and we will work your file.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

Where can I get a performance bond?
Through a surety broker. Performance bonds are underwritten on your financials, experience, and capacity, not issued from a vending machine. A broker sets up your surety program and shops multiple markets to place the bond your project requires.
How much does a performance bond cost?
Typically a small percentage of the contract amount, driven by contract size, your credit, your experience, and your work on hand. Larger or longer projects, and tougher credit, raise the rate.
Can a new or credit-challenged contractor get a performance bond?
Often, yes. It takes more underwriting and the right market, which is where a broker earns its keep. We build programs for growing contractors and shop the markets that write harder files.