State of ohio performance and payment bond form 2025

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Are there different types of performance bonds? There are two main categories: on demand bonds and conditional bonds.
Performance Bonds usually cover 100% of the contract price and replace the Bid Bonds (if required) on award. A Payment Bond is provided by a contractor/vendor to guarantee that his subcontractors and material suppliers on the project will be paid. Payment Bonds must be 100% of the contract value.
The typical price range for Performance Payment Bonds is . 5% to 4% of the contract price. Usually, the rate is presented as a dollar amount per $1,000 of the contract price. For example, a $250,000 contract might cost $25.00 per $1,000 of the contract price, or 2.5%.
It takes 24-72 hours to complete the performance bond process. This is a major factor in turnaround time so its important that you make sure of this beforehand!
Timing: An APG is typically issued before the project or contract commences, guaranteeing the refund of the advance payment if the contractor defaults. Conversely, a Performance Guarantee is issued after the contract is awarded and guarantees the contractors performance during the execution of the project.
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A performance bond is a financial guarantee to one party in a contract against the failure of the other party to meet its obligations. It is also referred to as a contract bond.

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