California performance and payment bonds are a specialty of Surety1. With access to more than a dozen surety bond companies, Surety1 can handle just about any bonding request. We offer competitive rates and reasonable underwriting terms.
Surety1 employees are experts at placing surety bonds for both construction projects and service contracts. Service contracts include janitorial and security companies. Surety1 is based in California and has been providing expert surety services since 2003. Additionally, Surety1 has substantial in-house authority to approve performance and payment bonds, speeding the approval process to hours versus days or weeks.
What are the underwriting considerations for California performance and payment bonds?
Even though the surety industry is regulated within the insurance industry, the underwriting process is more like obtaining a loan then an insurance policy. The surety will rely heavily on financial documentation when deciding to support, or not support a performance and payment bond request. The “3 C’s” of bonding are”
- Character – Has the applicant displayed a history of honesty and integrity?
- Capital – Does the applicant have the financial capital necessary to complete the project and pay all the sun contractors and suppliers?
- Capacity – Does the applicant have the staff, experience, and skill set necessary to complete the project.
Much like obtaining a bank loan, the larger the project, the more invasive the underwriting project will be. Smaller projects, say $500k and less, require only basic financial information and good credit. Once a project size exceeds $1mm, CPA prepared financial information, cash verification, and positive references will be required. Do yourself a favor, choose a bond only surety bond agency with years of experience.
Surety1 has the expertise to place almost any size bid bond, performance bond and payment bond. We are proud to have bonded hundreds of contractors since our inception. We will strive to be considered a valued business partner, offering advice and resources to help a contractor grow its surety capacity. For more information, call Surety1 today at 877-654-2327 and ask for the contract department.
How to Get Your California Performance and Payment Bonds Over $400k
- Complete an online application. It’s free and no-obligation.
- One of our surety experts will contact you with a firm quote and an agreement to sign.
- Provide payment and your signed agreement, and then you will receive your Surety Bond!
If you have any questions, please call us at 877-654-2327.
Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.