The cost of bonds can vary quite a bit based on a multitude of factors.
Bid bonds essentially, cost nothing, however, in many cases
bonding companies will charge $100 per
bid, or an annual service type package which would cover all of your
bid bonds for the entire year.
Performance bonds however, vary based on the trade you are in, financial strength, location and the
bonding company being utilized. In general terms, a smaller contract $1,000,000 and under, and cost on average 1.5-2% of the contract amount. The cost of the bond decreases with the size of the bonds. In some instances, we have written
performance bonds so large, that the cost falls under 1%. This would also be a
contractor with a very healthy balance sheet.
On the other hand, i am aware of
bonding companies charging a flat rate of 3.5-3% for the entire contract value. This tends to be work considered more hazardous, and possibly a
contractor that could be financially troubled.
Hope that helps!