Payment & Performance Bonds

The newest additions to products offered by A-1 Bonding, Inc. are payment bonds and performance bonds. A-1 Bonding offers these bonds in Hawaii only. Because of the economic conditions in both the United States and throughout the world, the credit and reinsurance markets have constricted and leave some contractors unable to secure the bonding they need to operate. Our expertise and experience in Hawaii enable us to offer these types of bonds.


 


Under Development

The #1 Bond Specialists for more than 30 years in the Hawaiian Islands

Frequently Asked Questions

Who requires payment and performance bonds?

All U.S. federal government construction projects require payment and performance bonds for general contractors. Some states, counties, cities and other municipal entities may require payment and performance bonds.

What is the difference between a payment bond and a performance bond?

A payment bond guarantees payment by the contractor to persons furnishing labor, materials, supplies and equipment for a project. A performance bond ensures the contractor will complete the project according to the terms of the contract.

Should I include the cost of bonds in my construction bids and contracts?

Bonds are ordinary and necessary business expenses and the costs should be allocated to specific projects.

Should I purchase a bond even if it is not required?

The offer to purchase payment or performance bonds may increase the likelihood a contract will be made.