# Question about Bond Rate Percentage



## DunesPainting (Jul 22, 2016)

We've recently started to bid on more commercial projects, and I have a contractor asking for our Bond Rate %. What are they asking for? Is this a surety bond that we need to get?

We've completed a couple of commercial projects, but haven't had to supply this yet. 

Thanks in advance for any help!


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## kmp (Jan 30, 2011)

Not quite as I have never had that asked. Could have something to do with your bond success and failure. If you have had bonds before and no claim against it your percentage would be good.I have had contractors ask for a performance bond but have never had to get one as the g.c. is responsible for bonding the whole job. I have told g.c.'s that I am not going to get one or if I do the price will go up to cover it. Most of the time they don't ask for one.The thing to watch out for is an umbrella insurance policy, that can get expensive.


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## akrause (May 18, 2010)

Most likely they want to know your companies performance bonding capacity, that's a fairly standard pre-qual question. Normally the answer is a flat dollar amount and not a percentage. You're insurance agent will send you a few forms to fill out and then quote you you're bond capacity.
If they (customer) mean something other than that, I'd say it's an odd way to phrase it and an out of the ordinary question.
I'd just give them a call and ask.


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