Step-by-Step Instructions to Complete a Public Performance Bond Form

1. Identify the Principal, Obligee, and Surety

• Principal: This is the contractor or business performing the work. Write the legal name of the individual or company exactly as it appears in the contract.

• Obligee: This is the public entity or project owner requiring the bond. Include their legal name and address.

• Surety: This is the bonding company providing the guarantee. Their name, address, and license number will be required.

2. Specify the Bond Amount

• Enter the total value of the performance bond, which is usually a percentage (e.g., 100%) of the project value as stated in the contract.

• Ensure the bond amount matches the contract requirements.

3. Detail the Project Information

• Provide the project name, description, and location.

• Include the contract number, start date, and anticipated completion date.

4. List Bond Terms and Conditions

• Clearly state the obligations the Principal must fulfill, such as completing the project on time, within budget, and according to specifications.

• Outline any warranty or defect liability periods if applicable.

5. Signatures and Notarization

• The Principal must sign the form in the designated area.

• A representative of the Surety (Attorney-in-Fact) must also sign and affix the company seal.

• Both signatures must be notarized to validate the bond.

6. Attach Supporting Documentation

• Include a copy of the contract and any related agreements required by the Obligee.

• Some bonds may require proof of financial stability, such as a credit report or audited financial statements.

7. Submit the Completed Form

• Submit the signed and notarized bond form to the Obligee or as specified in the contract. Ensure it is submitted before the project start date to comply with project requirements.

Tips for Accuracy When Completing a Performance Bond Form

1. Match Details to the Contract:

   • Double-check that the names, addresses, and project details match the information in the contract.

2. Verify Surety Credentials:

   • Ensure the surety is licensed and approved to issue bonds in the state where the project is located.

3. Meet Deadlines:

   • Submit the bond form within the timeframe specified in the bid or contract documents to avoid delays.

Why Are Public Performance Bonds Important?

Public performance bonds protect taxpayers by ensuring public projects are completed as promised. They also hold contractors accountable for meeting quality and performance standards, reducing the financial risk to public entities.

To learn more, explore What Is a Performance Bond? and How Does a Performance Bond Work in Construction?.

Common Questions About Completing Performance Bond Forms

Do Performance Bonds Need to Be Notarized?

Yes, performance bonds must be notarized to validate the signatures of the Principal and Surety. This ensures the bond is legally binding and enforceable.

What Happens If There’s an Error in the Bond Form?

Errors in the bond form can delay the project or result in the bond being rejected by the Obligee. Always review the form carefully or work with a professional to ensure accuracy.

Who Pays for the Performance Bond?

The Principal (contractor) pays the bond premium, typically 1-3% of the bond amount. This cost can be included in the project bid. For more details, visit Performance Bond Costs.

How to File a Claim on a Performance Bond

If the contractor fails to meet their obligations, the project owner can file a claim against the performance bond. The Surety will investigate the claim and, if valid, provide compensation or hire another contractor to complete the project. Learn more in How to File a Claim on a Performance Bond.

Final Thoughts

Completing a public performance bond form requires attention to detail and a clear understanding of the contract terms. By following the steps outlined above, you can ensure your bond form is accurate and accepted by the Obligee.

For more resources on performance bonds, visit Swiftbonds Performance Bonds or explore related topics like Construction Bonds and Bid Bonds.

Whether you’re a contractor or a project owner, ensuring the proper completion of a performance bond form is key to safeguarding project success!