A Performance Bond guarantees that a contractor will complete a construction project according to the contract terms and specifications. If the contractor fails to perform, the surety company steps in to complete the work or compensate the project owner. For Indiana public works projects, the bond amount equals 100% o…
Overview
What it is.
A Performance Bond guarantees that a contractor will complete a construction project according to the contract terms and specifications. If the contractor fails to perform, the surety company steps in to complete the work or compensate the project owner. For Indiana public works projects, the bond amount equals 100% o…
Who usually needs it
General contractors, construction companies, and subcontractors working on public works projects in Indiana (required for state projects $200,000+, political subdivision projects, and INDOT projects). Also used on many larger private construction projects.
Pricing & timing
What to expect.
Generic pricing
Performance bonds guarantee that a contractor will complete a project according to the contract terms. Typical Pricing:. • Small contracts: Commonly around 1–5% of the contract value (one-time upfront premium). • Larger contracts: Rates generally scale lower as contract size increases. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. • Full underwriting required: Credit, financials, experience, and bon…
Typical timeframe
Full underwriting required — typically 3–5 business days
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateINBond amount$100ObligeePublic and private project ownersBond classPerformance BondCategoryConstructionBondIndiana Performance BondPlain descriptionA Performance Bond guarantees that a contractor will complete a construction project according to the contract terms and specifications. If the contractor fails to perform, the surety company steps in to complete the wo…Who needs this bondGeneral contractors, construction companies, and subcontractors working on public works projects in Indiana (required for state projects $200,000+, political subdivision projects, and INDOT projects). Also used on many …
FAQ
Common questions.
When is a performance bond required for construction projects in Indiana?
For Indiana state public works projects managed by the Department of Administration, a performance bond is mandatory for projects estimated at $200,000 or more. For projects under $200,000, it may be required at the agency's discretion. Political subdivisions typically require performance bonds equal to the contract price (waivable for projects under $250,000 with alternative security). INDOT requires performance bonds at 100% of the bid amount for most projects, with exceptions for small contracts under $100,000 in specific categories. Many larger private construction projects also require performance bonds, though there's no statutory mandate for private work.
What is the bond amount for Indiana performance bonds?
Indiana performance bonds are typically required at 100% of the total contract price for public works projects. Indiana Code § 4-13.6-7-7 mandates 100% bonding for state projects $200,000+, and similar 100% requirements apply to political subdivision projects and INDOT contracts. The state allows incremental bonding (multiple bonds totaling 100% of contract price) if needed. For private projects, the bond amount is negotiated between the contractor and project owner but commonly follows the 100% standard.
How long does an Indiana performance bond remain in effect?
For Indiana public works projects, the performance bond surety cannot be released until one year after final settlement with the contractor. This one-year post-completion period applies to state projects (Indiana Code § 4-13.6-7-7), Title 5 projects (IC § 5-16-5.5-4), and political subdivision projects (IC § 36-1-12-14). The bond remains active throughout the entire construction period and continues through the warranty/defect liability period. Any claims against the surety must typically be filed within this one-year window after final settlement.
