Purchase the Ohio Performance Bond – $1,000,000 and Less
If you’re a contractor in Ohio working on public construction projects valued at $1,000,000 or less, an Ohio Performance Bond is essential. This bond ensures you’ll meet the terms of your contract and complete the project as agreed. Without it, you could lose the opportunity to secure public contracts and expose yourself to financial risks. In this guide, we’ll walk you through what a performance bond is, why it’s needed, and how to secure one for your next project.
When you win a public project, the government or public entity managing the project requires a performance bond to protect their investment. A performance bond is essentially a promise backed by a surety company that you, the contractor, will complete the project according to the agreed terms, including quality, timelines, and budget.
If you fail to complete the work as specified, the project owner can make a claim against the bond. The surety company will then step in to cover the cost of completing the project or fixing the issues, which can include hiring another contractor. As the original contractor, you are responsible for reimbursing the surety for any payments they make. The bond ensures that public projects are completed efficiently, safeguarding taxpayer money from risks like contractor defaults or poor performance.
Performance bonds are mandatory for most public construction projects in Ohio. The state wants to ensure that public projects funded by taxpayers are completed successfully and on time. When contractors win a public bid, the performance bond guarantees their commitment to fulfilling the contract. If a contractor walks away from a job or doesn’t meet project requirements, the bond provides a financial safety net for the government, ensuring the work continues without unnecessary delays.
For projects under $1,000,000, this requirement is even more critical. Many smaller projects still rely heavily on local budgets, and any disruption can lead to significant setbacks for the community. The bond ensures the government isn’t left scrambling if something goes wrong.
Getting a performance bond involves working with a surety company that will assess your financial stability, project experience, and ability to complete the work. While it may sound daunting, the process can be straightforward if you’re prepared. Here’s what you need to do:
Starting the application process early is crucial, as any delays in obtaining the bond could prevent you from beginning the project on time. At Axcess Surety Bonds, we work hard to streamline the application, making it easier for you to secure the bond quickly.
The cost of a performance bond typically ranges between 1% and 3% of the project’s total value. For projects under $1,000,000, this means you can expect to pay between $10,000 and $30,000, depending on several factors:
At Axcess Surety Bonds, we work with multiple surety providers to find you the best possible rate, ensuring that even contractors with credit challenges can still secure an affordable performance bond.
Failing to secure a performance bond can have serious consequences for your business. Without the bond, you won’t be able to start work on the public project, meaning you could lose out on valuable contract opportunities. Public entities require this bond to protect themselves from contractor defaults, so not having one disqualifies you from the bidding process.
In addition, not having a performance bond could tarnish your reputation with project owners and subcontractors. Public project owners rely on performance bonds as a sign of a contractor’s reliability. Without this bond, it’s harder to build trust, and you may lose future project opportunities, even in the private sector.
Although a performance bond protects the project owner, claims can still happen if issues arise with your work. If a project owner files a claim, the surety will investigate to determine whether the claim is valid. Here’s what you should do if a claim is filed against your performance bond:
At Axcess Surety Bonds, we help contractors handle claims professionally and work with the surety to mitigate any financial damage that a claim might cause.
Performance bonds aren’t just a requirement—they can also help you grow your business. Winning public contracts often leads to repeat business and helps you build a solid reputation within the industry. By securing a performance bond, you demonstrate your capability to handle larger, more complex projects. Many private project owners also look favorably on contractors who have successfully completed bonded public projects.
If you’re a small contractor or new to public work, securing performance bonds opens doors to opportunities that can accelerate your business growth. Axcess Surety Bonds can help you get started, even if you’re new to the bonding process, by providing expert guidance and helping you manage the bond application smoothly.
At Axcess Surety Bonds, we understand the challenges contractors face when working on public projects, and we’re here to make the bonding process as seamless as possible. Whether you’re working on a small $1,000,000 project or handling larger contracts, we provide the support you need to secure your performance bond quickly.
Here’s how we assist contractors:
A performance bond remains valid for the duration of the project. Once the project is completed and all contract obligations are met, the bond is no longer needed. If the project is delayed or extended, the bond may need to be updated.
Once a performance bond is issued and the project begins, it generally cannot be canceled. The bond must remain in effect until the project is finished and all terms of the contract are satisfied.
If you are unable to complete the project as required, the project owner can file a claim against the bond. The surety will step in to either finish the project or hire another contractor to do so. You are responsible for repaying the surety for any costs they cover in completing the project.
Securing an Ohio Performance Bond for projects under $1,000,000 is an essential part of doing business as a contractor in the public sector. It ensures you can take on projects with confidence, protects public project owners, and helps you build a reputation for reliability and success. At Axcess Surety Bonds, we’re here to guide you through the bonding process, ensuring you meet all requirements quickly and affordably.
Contact us today to learn how we can help you secure your Ohio Performance Bond and get started on your next public project.
Ohio Payment Bond – $1,000,000 and Less
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
