Construction sureties, placed through A-rated carriers
From a single contract bond to a full bond line for repeat work — performance, payment, bid, compliance and subdivision bonds across 40+ states. Prime credit markets and a specialty desk for bad-credit performance files.
The obligee's perspective — and why the bond wording matters
Every construction bond is written to a project owner (the obligee). The bond promises that the contractor will do three things: submit a legitimate bid (bid bond), complete the work to the contract's terms (performance bond) and pay the labourers, sub-trades and suppliers who work on the job (payment bond). If the contractor fails on any of those, the obligee can file a claim — and the surety pays the loss up to the bond's face amount, then recovers from the contractor and its indemnitors.
Because the obligee dictates the wording, every bond form on a public project is non-negotiable. Federal (FAR / DOD / GSA) obligees require Miller Act bonds on the exact SF-25 and SF-25A forms; state DOTs and municipal owners issue their own forms; private owners often adopt the AIA A312 form. We file the exact wording the obligee requires and confirm acceptance before the bond leaves our desk.
Construction bond programs — by sub-program
Each program below is a real, in-force line. Any of them quote within a business day; clean small bonds usually issue the same day.
Performance Bonds
Guarantee the contractor will complete the work to the contract's terms. Written for public and private obligees, in bid-plus-performance-plus-payment sets or as stand-alone bonds. Standard markets for prime credit; a specialty desk for bad-credit and distressed-financials placements.
Details & quoteContract Surety (Bid, Performance, Payment)
Full contract surety — bid, performance and payment bonds — written together on public bids and private-project bonded jobs. On a bonded set, the payment bond is the labourer's and sub's legal protection, and it's what makes the pay-when-paid clause enforceable further down the chain.
Details & quoteContractor Compliance Bonds
State-required contractor compliance and license bonds — general, plumbing, electrical, HVAC, roofing, home-improvement. Filed on the exact form the state contractor board publishes. Renewals calendared to avoid license lapse.
Details & quoteSubdivision & Site Plan Bonds
Improvement, subdivision, site-plan and maintenance bonds for developers. Released as work is accepted by the municipality — partial-release mechanics tied to the municipal-engineer sign-off schedule.
Details & quoteBid Bonds
Bid bonds guarantee the contractor will honour its bid if awarded and post the required performance / payment bonds. Written as a percentage of the bid amount (typically 5–10%) and released on award or bid rejection.
Maintenance / warranty bonds
Post-completion bonds guaranteeing a 1–2 year warranty period. Common on public roadway and utility work; written as a low-percentage extension of the performance bond.
Federal, state and private obligees — how each treats the bond
Federal projects — every US federal construction contract over $150,000 is bonded under the Miller Act. Bonds are written on the SF-25 (performance) and SF-25A (payment) forms; the carrier must appear on Treasury Department Circular 570 (T-Listed). Turnaround requires a full underwriting file — audited financials, work-on-hand, and personal indemnity — and typically runs three to seven business days on a first submission.
State and municipal projects — each state DOT and each city / township has its own bond form. Little Miller Acts (state-level analogues to the federal Miller Act) apply in most states; wording, effective dates and bond percentages vary. We keep the top forms on file and match them file-by-file.
Private-obligee projects — private owners and lender-imposed bond requirements often use the AIA A312 form, but not always. We check the actual document the owner is proposing and confirm which carrier will accept it before the bid closes.
New applicants vs established contractors
First bond — new applicant
Financials, credit, work-on-hand and personal indemnity all reviewed. Expect three to seven business days on the first file. Once underwritten, the contractor is on the carrier's book and future files move much faster.
Established contractor — inside a bond line
Bond-line applicants pre-approved for a single-job limit and an aggregate limit. Inside the line, new performance bonds issue same-day — no per-file re-underwrite unless the file is outside the line's parameters.
Bad credit / distressed financials
Standard markets decline; specialty markets accept files with tax liens, bankruptcies or credit hits. Pricing is higher and often includes partial collateral, but the bond still issues.
Setting up a bond line for repeat contract work
A bond line is a pre-approved surety capacity that a carrier extends to a contractor after its first successful underwrite. It's expressed as two numbers: the single-job limit (the biggest job the contractor can bond on any one contract), and the aggregate (the maximum outstanding across all open bonded work). Inside those limits, new performance and payment bonds can issue the same day the contract is signed — no per-file underwrite. The line is reviewed annually against updated financials, and it grows with the contractor as work-on-hand and financial strength grow. Every serious contract shop should have one; we set it up for you on the first bond and manage renewals from there.
Frequently asked questions
Good to KnowConstruction-specific questions we get most often.
On public work, yes — the Miller Act (federal) and Little Miller Acts (state) require all three on bonded projects. On private work the requirement is whatever the owner's contract says.
Standard-credit performance and payment bonds price at roughly 1–3% of the bonded contract amount, on a graduated rate schedule. Bid bonds are usually issued at no charge to the contractor. Specialty-market pricing on bad-credit files is higher.
The single-job limit inside a bond line depends on financial statement quality and prior contract history. First-time contract sureties usually cap at 3–5× the contractor's net working capital; established lines can be multiples of that.
Yes. Every carrier we use is on the Treasury Department's Circular 570 register, which is the federal requirement. Miller Act files require full financials and typically three to seven business days on first submission.
Almost certainly yes. Our specialty desk exists exactly for files declined by standard markets. Tell us the reason for the decline and the bond's amount and we'll tell you the realistic path.
Tell us about your construction bond
Send the bid invitation, the owner's bond form or the contract wording, along with basic financials, and we'll quote it within a business day.
- 201-661-2381 — Anthony Spina, direct line
- aspina@acsbonding.com
- 1200 MacArthur Blvd., Suite 302A, Mahwah, NJ 07430
Request received!
Anthony will be in touch shortly. For an urgent filing, call 201-661-2381.