Platinum Bonds Insurance Agency
Research before you apply.A payment bond guarantees that subcontractors, suppliers, and laborers will be paid for their work on a construction project. Required for public improvement projects in Ohio at 100% of the contract amount, it protects the payment chain and ensures workers and material suppliers are compensated even if the general con…
A payment bond guarantees that subcontractors, suppliers, and laborers will be paid for their work on a construction project. Required for public improvement projects in Ohio at 100% of the contract amount, it protects the payment chain and ensures workers and material suppliers are compensated even if the general con…
Prime contractors working on public improvement projects in Ohio must provide payment bonds to protect subcontractors, material suppliers, and laborers. Private project owners may also require payment bonds as part of the construction contract. The bond is typically issued alongside a performance bond.
Payment bonds guarantee that a contractor will pay subcontractors, laborers, and material suppliers. Typical Pricing:. • Small contracts: Commonly around 1–5% of the contract value. • Larger contracts: Rates generally scale lower as contract size increases. • Payment bonds: Often paired with performance bonds at a combined rate. • Full underwriting required: Credit, financials, experience, and bonding history reviewed. Payment bonds are required on most public proje…
Full underwriting required — typically 3–5 business days
Ohio payment bonds protect subcontractors, material suppliers, and laborers who provide work or materials on public improvement projects. These parties are direct beneficiaries of the bond and can make claims against it if the prime contractor fails to pay them for their labor or materials. The bond ensures payment for "all lawful claims" as required by ORC § 153.54(B)(2).
Ohio requires payment bonds to be 100% of the contract amount for public improvement projects. This means if the construction contract is $500,000, the payment bond must also be $500,000. For ODOT/transportation projects, the bond amount is adjustable for contract changes of $40,000 or more. Payment bonds are typically issued together with performance bonds at the same amount.
Under ORC § 153.56, claimants must follow strict deadlines: (1) Serve a Notice of Furnishing on the prime contractor (unless the contract is $30,000 or less and directly with the prime); (2) Provide a statement to the surety within 90 days after project completion and acceptance by the public authority; (3) File a lawsuit 60 days after notice to sureties, but no later than 1 year after public authority acceptance. Missing these deadlines can result in losing your right to claim against the bond.
Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.