Maintenance bond cost is a percentage of the total amount of the bond. When considering what percentage, or premium, to offer to the principal, sureties consider a variety of financial and non-financial factors. The most important among these factors is personal credit score. The higher an applicant’s score, the lower their rate usually is.
In the case of maintenance bonds in particular, sureties will also want to know the amount of the initial contract for the construction project. They may also want to see a principal’s financial statements, and receive more information about their experience and their work records.
Typically, if an applicant has a high credit score, they can expect their bond to cost between 1%-4% of the total bond amount. For a $30,000 maintenance bond, for example, principals can expect a premium between $300 and $1,200.
The surety which issues the bond is also an important determining factor of the cost of your bond. Lance Surety Bonds works with a number of acclaimed and highly professional sureties. All of them are A-rated and T-listed, which means that any bond issued by them is among the best bonds available in the country.
Furthermore, some applicants may be able to reduce costs by obtaining their maintenance bond and performance bond together, due to any performance-related risks being spread more evenly between these bonds.