Payment bonds
A payment bond guarantees that the subcontractors, laborers, and material suppliers on your project get paid. Public owners require it so no lien can attach to public property.
Requesting a bond does not affect your credit.
Bond cost calculator
Estimate a bonding budget for the contract you are pricing. Every result is shown as a range, never a single figure.
Enter your contract price to see an estimated bonding range for payment bonds.
For planning only. This is not a quote. Your final premium depends on underwriting.
How a payment bond works
If you fail to pay a subcontractor or supplier who has a valid claim, that party can make a claim against the payment bond. The surety pays the valid claim and looks to you for reimbursement.
On federal projects the Miller Act requires payment and performance bonds above a statutory threshold. Most states have their own little Miller Act statutes that apply the same rule to state and local work.
Who it protects
Subcontractors, laborers, and material suppliers on the bonded project.
Bond amount
Typically 100% of the contract price, set by the contract documents.
Cost
Usually quoted together with the performance bond as a single premium.
Payment bond FAQ
Payment bond questions, answered
A payment bond guarantees that your subcontractors and suppliers get paid for the labor and materials they put into your project. If they go unpaid, they can claim against the bond instead of the project. That protection is why owners and general contractors require one before work starts.
Payment bonds are almost always issued together with a performance bond, and one premium covers both. The combined premium is typically 2 to 3 percent of the contract value. Your rate depends on your financials, your contracting history, and the size of the job.
No. Payment and performance bonds are issued together on almost every bonded job, and one premium covers both. You do not pay a separate premium for the performance bond.
Federal projects over $150,000 require one under the Miller Act. Most states mirror that rule for public work with their own Little Miller Acts, and many private owners and general contractors require payment bonds by contract.
A performance bond guarantees the work gets finished according to the contract. A payment bond guarantees the people supplying labor and materials get paid. The two are underwritten and issued together on almost every bonded job.
Share your details once and CapStream sets up your bonding line. From there you pull bid, performance, and payment bonds project by project, up to $10 million with no minimum, with mobilization funding available for upfront project costs. Start with the eligibility check.
Get payment and performance bonds for your next contract
Requesting a bond or loan does not affect your credit.