What are the Types of Surety bonds?

The three most common types of surety bonds are: Bid Bonds Performance Bonds Payment Bonds

Are Surety Bonds paid monthly?

No. You don't pay month-to-month for sureties. When you are quoted a price for a surety bond, you make a one-time payment.

How do I apply for a surety bond?

Applying for a surety bond, no matter the sort of bond, is to contact a surety agency. For instance, you can reach CSBA here to get started on obtaining your surety bond.

What is a payment bond?

A payment bond ensures that all of a contractor’s laborers, subcontractors, and suppliers are paid on a particular project.

Who requires payment bonds?

Payment bonds are required on almost all public projects. General contractors sometimes require them of their subcontractors, and occasionally private owners will require them.

Who pays for a payment bond?

The contractor, or principal, purchases the bond and pays for it.

Do Payment bonds expire?

Payment bonds expire after the project is completed and statutory timeframe have lapsed.

What is the difference between a surety bond and a payment bond?

A payment bond is a type of surety bond. The only real difference is the qualifying term, in this case, it's "payment" and only notes what sort of surety bond it is.

What does a performance bond cover?

The performance bond covers the owner of the project against losses if the contractor fails to deliver on the project within the contractual provisions.

How long does a performance bond last?

Since performance bonds guarantee the completion of the contract, they last until the project is finished along with any required warranty period included in the agreement.

When can you release a performance bond?

Usually, a performance bond is released when the project is completed, though some public projects stipulate that a contractor gives a warranty following completion that the performance bond covers.

What is the difference between a performance and a payment bond?

We have a detailed article that explains the differences here , but the short answer is that the performance bond secures the contractor's promise to complete a job within the terms and conditions outlined at the agreed price while the payment bond protects subcontractors, vendors, and laborers against nonpayment.

What is the difference between a bid bond and a performance bond?

Bid bonds are required when contractors bid a project and guarantees if they are low bidder, they will enter into the contract and provide any required performance and payment bonds. Performance bonds guarantee the actual performance of the work to be completed by the contractor according to the terms of the agreement. What happens to a bid bond after a contract is signed? The bid bond is replaced by a performance bond if the bid is accepted and the contractor enters into a contract with the owner or general contractor.

We Help California Contractors Grow

Celebrating 40 Years of Helping Contractors Grow their Bonding Capacity

For many California contractors, bonding capacity is the number one item holding them back from growing their business. We help open doors to bonding, unlocking your potential to pursue opportunities and strategically build your business.

Commercial Surety Bond Agency (CSBA) has been providing California contractors contractor bonds backed by deep industry expertise since 1984. We are one of the largest surety only agents in California with over 225 years combined experience both as surety underwriters and agents, and we work with over 300 construction companies ranging in size from one-man startups to large national firms.

Our singular focus on surety, unmatched depth of experience and unrelenting passion for helping guide our clients on their journey to success truly separates us from the rest.

The CSBA Difference

We understand you have many options when it comes to choosing a contractor bond provider. For over 35 years California contractors have partnered with us because we offer more than just expert surety service–we’re partners in the success of your business.

Our licensed surety team takes time to understand the history and goals of your company, and tailor our advice and services to put you on the path toward growing your business. With over 225 years of combined surety experience, our finance experts work to identify strategies that can help you win bids and tackle projects that may have once seemed unreachable.

When you partner with CSBA, you not only receive competitive rates on contractor bonds, but an entire suite of business services geared to help you succeed.

Expert Guidance

Increased Bonding Capacity

First-Class Service

Success Stories

"The team at CSBA are rockstars. When I started my business, they helped me get my controller, CPA, and accounting system in place, and then set a game plan to help me grow. Just a little over a year, they were able to get me approved for a $10 million bond. If you want to grow your business, you need to call these guys."

"I was with one of those surety bond brokers out of the area and struggling to increase my bonding capacity beyond $1 million. CSBA met with me to learn about my business, and guided me on steps to take to get my bonding levels up. 18 months later, CSBA got me approved for a $6.5 million project."

"The bonding capacity that CSBA has negotiated for Slater Builders has allowed us to pursue increasingly larger opportunities and strategically build our business. CSBA Is always professional, knowledgeable, and willing to put in the extra mile to ensure a smooth process."

"CSBA showed tremendous trust in our team and our vision back in 2015 we were just a startup company. They are always willing to listen and help guide us as we continue to grow our company. CSBA is one of our most trustworthy professional advisors for critical business decisions, and we would not be the company we are today if it were not for CSBA."

Our Contractor Bond Team

We’re proud to be your local, trusted surety bond provider. While many national bond providers operate in multiple states, we offer local expertise that gives you a competitive edge. Each member of the CSBA team brings decades of regional insights to help you make the right decisions for your construction business. You’re helping to build California–you should have a surety team behind you that understands the challenges and opportunities available in our great state.

Ralph Eidem

Founder

Dan Huckabay

President

Dwight Reilly

Partner

Michael Stong

Partner

Frank Morones

Partner

Ben Wolfe

Partner

Arturo Ayala

Senior Underwriter

Shaunna Ostrom

Senior Underwriter

Chelsea Liberatore

Senior Underwriter

Adrian Langrell

Senior Underwriter

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