Payment Bonds is legally licensed to issue payment bonds nationwide. Whether you’re a contractor in Illinois, Texas, Indiana or Washington, we can help!

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Payment bonds ensure that subcontractors and material suppliers are paid according to contract, which is critical for jobs on public property where mechanic’s liens cannot be used. These bonds are typically used in conjunction with performance bonds, oftentimes even on the same bond form. Contractors purchase them when negotiating a construction contract, but don’t worry if you don’t know much about them yet. The expert surety specialists at have developed this guide just for you.

To qualify for our construction bonding program, applicants must have a credit score at or above 700. can offer $250,000 of single job limit bonding coverage or $500,000 of aggregate limit bonding coverage.

Pay A Low Payment Bond Cost.

When working with, you get the lowest rate available without any additional brokerage fees. The rate you’ll pay is subject to

  • the size of the job at hand and its contractual terms
  • the amount of bonding coverage required
  • the principal contractor’s work record
  • the principal contractor’s credit score
  • the principal contractor’s other financial credentials

Payment bond rates typically fall around 3%, which would translate to a $3,000 premium for $100,000 of coverage. The best way to determine exactly what your premium will be is to get a free surety bond price quote with no obligation.

Enjoy Fast, Easy & Accurate Bonding.

At, we know you need your bond as soon as possible. You don’t have time to waste, and you don’t want any mistakes on your bond form. We can help. Your friendly account manager will walk you through the entire bonding process, which can take as little as 2-3 business days. We also offer an overnight shipping option if you’re in a rush. What are you waiting for? Get started now!

Learn More About Payment Bonds.

The federal Miller Act requires that surety bonds be used on all publicly funded projects that exceed $100,000. Project owners managing a job on private property might also choose to require surety bonds if they so desire. Mechanic’s liens, which ensure payment of outstanding debts upon sale of a property, can be placed on private property but not on public property. As such, surety bonds essentially take the place of mechanic’s liens when contractors/subcontractors work on public property.

Each bond that’s issued binds three entities together.

  • The obligee is the project owner requiring the bond to ensure the general contractor pays subcontractors and material suppliers appropriately.
  • The principal is the contractor who purchases the bond as a guarantee that subcontractors and material suppliers will be paid.
  • The surety is the underwriter that issues the bond, thus guaranteeing that subcontractors and material suppliers will be paid.

If there is a claim on the bond due to nonpayment or other contractual breech, the subcontractor (or other wronged party) files a claim on the bond. If the claim is found to be valid, the surety that issued the bond will make sure the wronged party is in some way compensated for their loss. Since the bonding process effectively brings a neutral third party in to execute the agreement, it provides a certain measure of reassurance to all involved with a project — particularly projects that involve a great deal of money.

As a type of contract bond, payment bonds are riskier for underwriters to issue than standard commercial bonds. As such, payment surety bonds can be more difficult to qualify for — especially when applicants have a poor work history, a low credit score or other financial problems.

If you have any other questions about payment surety bonds, please call us at 1 (800) 308-4358 between 8 a.m. and 7 p.m. CST Monday through Friday.

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