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I am putting together a bid on a large restoration job. I would act as GC and sub-out masonry and some other trades. The stumbling block is a requirement for a 50% performance bond (this is a government job). Is there a straight forward process for obtaining a bond and to obtain it fairly quickly?
It has been many years ago, we bid on a job which required a Performance Bond and we did get a bond. We did not get the job so there was no cost.
You need to start with your insurance company. They probably will not be able to issue you a bond, but they will know who to call.
They will want all of your financial information and you will have to be able to prove to them that you are qualified with a work history and strong financially to do the job.
Then, if an insurance company will issue you a bond, it will probably cost 5 to 10% of the job.
The process is not quick, nor easy. If that does not work, look for a larger contractor that already does work like this to see if you can work under their bond.
If it is a Government job, you will probably have to pay the Prevailing Wage which is the local Union scale.
When checking on your bond, find out if all of your Subs will also need a Bond.
There are reasons why Government jobs are so expensive. The Bonding company is guaranteeing that the job will be completed even if you fail.
Bond cost will be based on dollars bonded and your creditworthiness.
They will want to see performance on similar jobs, they will also not want you to be more than 5 or 10% below the next bidder unless you have some unique process that shows why.
You can also usually post a cash bond.