Quick Answer The Miller Act is a federal law requiring performance and payment bonds on federal construction contracts exceeding $150,000. The performance bond protects the government; the payment bond protects subcontractors and suppliers, who can't place liens on federal property. Most states have their own 'Little Miller Acts' applying the same requirements to state and municipal projects. Contractors bidding public work need to understand both. The Miller Act is the reason performance and payment bonds exist on virtually every pub...Read More

Quick Answer Construction bonds (also called contract bonds) guarantee performance on building projects. The four main types are bid bonds (guarantee you'll honor your bid), performance bonds (guarantee project completion), payment bonds (guarantee subs and suppliers get paid), and maintenance bonds (guarantee against defects after completion). Federal projects over $150,000 require performance and payment bonds under the Miller Act, and most public projects require them by law. Construction bonding has its own ecosystem — separate ...Read More

Quick Answer To get a bid bond: (1) confirm the contract price, the bid bond amount required (usually 5–20% of your bid), (2) fill out an application on Bonds Express website, (3) for larger projects, you may need to provide business financials, personal financials and a work-in-progress schedule, (4) get approved for a bonding line, and (5) receive your bid bond — usually at no charge. The surety qualifies you for the performance bond behind it, so approval for the bid bond is really approval for the whole project. Bid bonds are ...Read More

Quick Answer A bid bond guarantees that if you win a project, you'll sign the contract at your bid price and provide the required bonds. A performance bond guarantees you'll actually complete the project once you've signed the contract. The bid bond comes first and is free; the performance bond follows after award and costs 3% of the contract. They're sequential stages of the same bonded project, not alternatives. Bid and performance bonds work in sequence: the bid bond gets you to the table, the performance bond backs the wor...Read More

Quick Answer A performance bond guarantees the contractor will complete the project according to the contract. A payment bond guarantees the contractor will pay subcontractors, laborers, and material suppliers. They're usually issued together on construction projects and often share a combined premium of around 3% of the contract value. The performance bond protects the project owner; the payment bond protects the people working under the contractor. Performance and payment bonds are the two core contract bonds on almost every bonded ...Read More