A performance bond protects a project owner against any financial damages that may arise as a result of the bonded contractor failing to fulfill their contractual obligations in a timely manner.
A payment bond protects all subcontractors, suppliers, laborers, and agents of the bonded contractor against non-payment for work completed or materials supplied.
You are required to file these bonds if the project owner has required it as part of your job contract. Most, if not all, government contracts (local, state, or federal) require performance and payment bonds to be posted before work can begin.
These performance and payment bonds are variable based on a combination of the project cost and a credit check. Begin your application today for a free quote.
To apply for your payment & performance bonds, complete and submit the application below. Below is a list of documents we will need from you, but feel free to call our contract bonding experts first to discuss your project and we can help you through the bonding process. Call 800-361-1720 to learn more about how to increase your bonding limit and get the best performance bond rates!
Typical documents requested:
Let our team find you the best rates and quickly approve your Payment & Performance Bonds, so you can get back to work! We work with all sizes of contractor and service businesses to help them grow and get awarded contracts. Give us a call today to get started, whether you need a bond now or want to learn more about the surety bonding process.
A surety bond is an agreement between the Principal (the contractor filing the payment & performance bonds), an Obligee (the project owner requiring the bonds), and a surety company that financially backs the bond. Though payment & performance bonds are generally issued at the same time, they cover two separate agreements:
Payment bonds guarantee that the lead contractor will pay all of their subcontractors, suppliers, agents, and laborers for their work and materials. If the contractor fails to do so, the surety company will cover the initial payments, at which point the bondholder will be required to fully repay the surety company for all damages.
Performance bonds guarantee that the contractor will complete the work agreed to in the project contract. In the event that the contractor fails to complete the project as agreed, the surety will cover all financial damages to the Obligee, at which point the Principal must repay the surety company.
A surety bond is NOT an insurance policy for the contractor; it does not protect the Principal against financial damages in the event that they fail to fulfill their contractual obligations. Instead, it protects the Obligee in the event that the contractor refuses or is unable to complete the work.
I have processed 2 defective title bonds through South Coast Surety and I am the type that gets worried for any little detail and want to make sure everything is done correctly the first time to prevent double work for myself and everybody. Knowing how I am both times I had to call customer service and they answered every little question I had in a very nice and gratifying way that made me feel I would not have any problems in which I did not. South Coast Surety has the ultimate best customer service.
Gaby - CA
I was shopping for a surety bond for the first time and having trouble communicating with several different companies. When I contacted South Coast Surety they responded quickly and performed the transaction quick and easy. I might have been able to find a lower price, but their professionalism was worth a couple extra dollars.
KG C. - CA
We are opening up a Mental Health Residential Treatment Center and needed a Surety bond since we will be handling some clients cash resources. I reached out to South Coast Surety, they sent me an application, paid our premium and had our bond sent to us immediately. Everyone I spoke to and emailed was courteous, attentive and responded very quickly. We will most definitely continue to get all of our bond services from South Coast.
John F. - CA
Great customer service from South Coast Surety. When I had questions about the bond and process, their customer service team assisted me with a sense of urgency and answered my questions. I recommend using their services. I will be a returning customer.
P&C B. - CA
I needed a surety bond and was referred by another company to south coast. I am very impressed with the level of customer service in every stage of issuing the bond, the rapid response to the get the bond issued and communication with the team. Great team and awesome service. I highly recommend South Coast Surety for you bond needs.
Mirwais A. - CA
I was in need of obtaining my CA Insurance Bond. I was able to obtain my required Bond quote online within minutes. I approved the quote and requested the Bond to be issued. On the same day, I received the Evidence of Coverage. Could not ask for better pricing or better service. I highly recommend South Coast Surety to meet a wide range of Bonding needs.
Udo G. - NJ
South Coast Surety has been proudly providing surety support to all fifty U.S. states for twenty years. Starting out as a small agency with a dream in San Clemente, California, we have steadily grown into one of the largest bond-only agencies in the nation. We write all commercial bonds and contract bonds for every American business and industry. Our greatest achievement is helping our clients grow their business alongside our own through coaching and obtaining larger bonding limits at the best rates. We work hard for our clients and take pride in bonding businesses that have been declined by our competitors.