How much does a performance bond cost?
Quick Answer
Performance bond costs, as with credit or other types of insurance policies, vary widely based on a number of different factors. Some of these factors include the type of project the bond is for, the applicant's credit history and the location where the bond is required. Typically, standard rates for performance bonds range between 1 and 3 percent of the total bond amount requested.
Continue ReadingFull Answer
Other factors that determine the cost of a performance bond are the type of industry the bond is being used for and the particular surety company that issues the bond. ACHR News explains that surety companies vary in the way that their performance bonds are written and in how their fees are charged. Some companies charge a flat fee, while others charge a certain percentage of the total amount of the bond. For a bond applicant with a good credit rating and a solid financial history, bond rates can be as little as .5 percent of the total value of the bond, according to Construction Law Today. High-risk applicants, such as those with bad credit histories, can expect to pay higher performance bond rates, usually anywhere between 5 and 20 percent of the total bond amount, says the ACHR News.
Learn more about InsuranceRelated Questions
-
Q:
How long should it take to run 10 kilometers?
A: Performance in a 10 kilometer race depends on a number of factors, including age, gender, fitness level and difficulty of the course itself. Finishing time... Full Answer >Filed Under: -
Q:
How do insurance companies make money?
A: Insurance companies make money in different ways, including revenue from premiums, interest-earning investments and insurance policies from other insurance... Full Answer >Filed Under: -
Q:
What insurance is available for people 62 and older?
A: Most insurance policies, including permanent and term life policies, are available to people who are 62 years and older. However, all insurance companies h... Full Answer >Filed Under: -
Q:
What kind of coverage do you get with a homeowner's policy?
A: Most standard homeowner's insurance policies include coverage for the structure of the home, liability, personal belongings and living expenses, according ... Full Answer >Filed Under:
