Construction contractors bidding on or awarded Michigan state or local government public works contracts valued over $50,000 must obtain this bond as mandated by the Michigan Public Works Bond Act of 1963, ensuring project completion per contract terms.
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.
StateMIBond amountVaries by license type or projectObligeeOttawa County Board of County CommissionersBond classPerformance BondCategoryOtherBondPerformance Bond (Annual)Plain descriptionHighway EncroachmentWho needs this bondConstruction contractors bidding on or awarded Michigan state or local government public works contracts valued over $50,000 must obtain this bond as mandated by the Michigan Public Works Bond Act of 1963, ensuring proj…
