Surety bond where facility under construction and not available for service at time buyer signs contract
Sellers of prepaid entertainment contracts (including health spas, gyms, dance studios, martial arts schools, and social referral services) for facilities that are under construction and not available for service at the time the buyer signs the contract. Required when: Required when a seller enters into a prepaid ente…
Overview
What it is.
Sellers of prepaid entertainment contracts (including health spas, gyms, dance studios, martial arts schools, and social referral services) for facilities that are under construction and not available for service at the time the buyer signs the contract. Required when: Required when a seller enters into a prepaid ente…
Who usually needs it
Sellers of prepaid entertainment contracts (including health spas, gyms, dance studios, martial arts schools, and social referral services) for facilities that are under construction and not available for service at the time the buyer signs the contract.
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.
StateOHBond amount$10,000Term lengthMaintained until twenty-four months after completion of the facility and commencement of service.ObligeeOhio Attorney GeneralRenewalThe bond must be maintained continuously until the seller is relieved of the obligation twenty-four months after the facility opens and service commences.Bond classPerformance BondCategoryEducationBondSurety bond where facility under construction and not available for service at time buyer signs contractStatutory referenceOhio Revised Code 1345.421JurisdictionState
