Surety bonds • North Carolina
North Carolina Public Construction Bonds (G.S. 44A-26): Requirements and Deadlines
Under North Carolina General Statute § 44A-26, when construction contracts for one public project total more than $300,000 ($500,000 for state agencies and UNC institutions), each contractor or construction manager at risk with a contract over $50,000 must provide performance and payment bonds for 100% of the contract amount.
This guide covers the thresholds, who the bonds protect, payment bond claim deadlines, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
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When bonds are required
| Public owner | Project threshold | Contracts covered |
|---|---|---|
| Local governments and other contracting bodies | Contracts for one project total more than $300,000 | Each contract over $50,000 |
| State departments, state agencies, and UNC institutions | More than $500,000 | Each contract over $50,000 |
Source: N.C. Gen. Stat. § 44A-26. Both bonds must be issued by sureties authorized in North Carolina.
Who the bonds protect
The performance bond protects the contracting body, and the payment bond protects those who supply labor or materials for the project. Each bond is for 100% of the construction contract amount (N.C. Gen. Stat. § 44A-26).
Payment bond claim deadlines
- Who may sue. An unpaid claimant who performed labor or furnished materials may sue after 90 days have passed since its last labor or materials.
- 120-day notice. A claimant with a contract with a subcontractor, but not the contractor, must give written notice within 120 days after its last labor or materials.
- One-year suit deadline. Suit must be filed within one year after the claimant’s last labor or materials, or one year after final settlement with the contractor, whichever is later.
Source: N.C. Gen. Stat. Chapter 44A, Article 3. Deadlines are strict, so claimants should get legal advice early.
How much North Carolina contract bonds cost
Performance and payment bonds are usually priced together as one premium, commonly about 0.5% to 3% of the contract amount based on the contractor’s finances and experience (NASBP).
North Carolina public construction bond FAQs
When are performance and payment bonds required in North Carolina?
When contracts for one project total more than $300,000 ($500,000 for state agencies and UNC), for each contract over $50,000.
How much are the bonds?
100% of the construction contract amount for each bond.
How long do I have to sue on a North Carolina payment bond?
One year after your last labor or materials, or one year after final settlement with the contractor, whichever is later.
Related guides
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- Buy a surety bond online
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- Oklahoma public works bond
- South Carolina public works bond
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- Washington public works bond
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Important information
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your North Carolina public project, and a licensed agent will help you set up bonding.
