The rules this calculator uses
| Construction over $150,000 | Performance and payment bonds required, each normally 100% of the contract price (FAR 28.102-1, 28.102-2). A bid guarantee is usually required too: at least 20% of the bid, not more than $3 million (FAR 28.101-2). |
|---|---|
| Construction $35,000–$150,000 | The contracting officer chooses two or more payment protections, such as a payment bond, irrevocable letter of credit or escrow. |
| Services and supplies | Bonds only if the solicitation specifically requires them. |
Thresholds checked against FAR 28 in October 2026. The premium is an estimate; your surety sets the real rate. More: SF-24 bid bond · SF-25 performance and payment bonds.
Questions
How much is a bid bond on a federal contract?
At least 20% of the bid price, but not more than $3 million (FAR 28.101-2).
When are performance bonds required on federal contracts?
On construction contracts over $150,000, both a performance bond and a payment bond are required, normally for 100% of the contract price.
How much does a performance bond cost?
The surety charges a premium, often around 1% to 3% of the contract amount for small contractors, depending on credit, financials and experience.