Performance Bonds in Everett, Washington

A performance bond provides assurance that a contractor will complete a project according to the terms of a contract. These bonds are commonly used for construction projects and may be required by project owners, general contractors, or government agencies.

How Performance Bonds Work

A performance bond involves three parties:

• Principal: The contractor responsible for completing the work
• Obligee: The project owner or organization requiring the bond
• Surety: The company issuing the bond

If the contractor does not complete the project as required, the obligee may make a claim. The surety will review the claim and respond according to the bond’s terms.

Performance bonds are often used alongside bid bonds and payment bonds. Each serves a different purpose within the bidding and construction process.

Support for Your Next Project

Bonding requirements can vary considerably between projects. Top Insurance Associates can help you understand the application process and explore performance bond options based on your contract and business qualifications.

Contact Top Insurance Associates in Everett, Washington, at 425-513-6007 to get started.

Frequently Asked Questions

When is a performance bond required?

It may be required by a project owner, government agency, lender, or general contractor.

What information is needed to apply?

The surety may review the contract, project details, business experience, financial records, credit, and previous work history.

Does a performance bond protect the contractor?

The bond primarily protects the obligee by providing financial assurance that the contractual work will be completed.