Lance Surety Bond Associates, Inc.

Toll-free: (877) 514-5146

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Payment Bonds

What is a payment bond?

In the unfortunate event that a contractor defaults, Payment Bonds ensure that the principal will pay all applicable subcontractors, laborers and materials suppliers associated with the project. Of note, payment bonds are frequently submitted together with a "Performance Bond" to an obligee, which is where the common term "Performance and Payment Bond" comes from.

Want a FREE QUOTE? Visit our Contract Bond Application Center for more information.

Current Market for Payment Bonds: In today's surety bond market, contract bonds such as payment bonds are being written just about the same way across the industry. At the beginning of the 21st century, bonding companies often approved contractors for bonds in excess of what their financial statements and credit history should have rated and, as a result, suffered record losses. As this last decade has progressed, underwriting techniques have stabilized, and bonding companies are currently applying more scrutiny when underwriting these types of contract bonds.

About Our Programs: We currently have strong relationships with a variety of companies that can meet the needs of just about any principal in need of a payment bond or performance bond. Our company is confident that we can use our business connections to help you find the right surety bond at the best possible rate.