Serving Businesses and Contractors Throughout Florida and the U.S.
(941) 961-5948
(941) 961-5948
Serving Businesses and Contractors Throughout Florida
Performance Bond
Since 2010 | Personalized Customer Service | Quick Response Time
(941) 961-5948
Performance Bonds for Construction Projects
Performance bonds are essential risk-management tools that protect project owners, developers, and government entities by guaranteeing that a contractor will complete a construction project according to the terms of the contract. If the contractor defaults, the performance bond provides financial protection to ensure the project is completed without costly delays or losses.
Whether you are bidding on a public project or safeguarding a private development, securing the right performance bond is critical to keeping your project on track.
We'll Guide You Through the Performance Bond
The performance bond assures that the principal will perform the work it is contracted to perform in accordance with the contract plan and specifications, and perform all the other obligations in the construction contract.
Get in touch with the experts at Lincoln Surety Group for your performance bonds. We offer quick and affordable bond services and personalized customer service.
What Is a Performance Bond?
A performance bond is a type of surety bond that guarantees a contractor’s performance under a construction contract. If the contractor fails to meet contractual obligations—such as abandoning the project, failing to meet specifications, or missing deadlines—the project owner can file a claim on the bond.
Once a valid claim is approved, the surety may:
- Provide financial compensation
- Hire a replacement contractor
- Fund the completion of the project
This protection ensures continuity and minimizes financial risk for project owners and stakeholders.
Performance Bonds for Construction Projects
Performance bonds for construction are commonly required on:
- Public works projects
- Government-funded construction
- Commercial developments
- Large private construction contracts
They are often issued together with payment bonds, forming what are known as performance and payment bonds, which protect both the project owner and subcontractors.
Federal Performance Bond Requirements (Miller Act)
Under the Federal Miller Act, performance bonds are mandatory on all federally funded construction projects valued at $100,000 or more. This law protects taxpayer-funded projects by ensuring contractors are financially capable of completing the work.
In addition to federal requirements, many states have their own “Little Miller Acts” that require performance and payment bonds for state and municipal projects.
Who Needs a Performance Bond?
You may need a performance bond if you are:
- A contractor bidding on public works projects
- A general contractor working on government contracts
- A developer requiring financial protection
- A business owner entering a high-value construction agreement
Performance Bonds for Quality Assurance
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