Surety bonds • Georgia
Georgia Public Works Bonds: Performance and Payment Bond Requirements
Under O.C.G.A. §§ 36-91-70 and 36-91-90, local government public works construction contracts estimated at more than $100,000 require a performance bond and a payment bond, each for at least the total amount payable under the contract. Local governments may also require bonds on smaller contracts.
This guide covers when the bonds are required, who they protect, payment bond claim notices, 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
| Bond | Threshold | Amount |
|---|---|---|
| Performance bond (§ 36-91-70) | Contracts estimated over $100,000 | At least the total amount payable under the contract, increased as the contract grows |
| Payment bond (§ 36-91-90) | Contracts estimated over $100,000 | At least the total amount payable under the initial contract |
Sources: O.C.G.A. § 36-91-70, O.C.G.A. § 36-91-90. Governments may require bonds on contracts of $100,000 or less.
Who the bonds protect
The performance bond protects the governmental entity. The payment bond protects all subcontractors and all persons supplying labor, materials, machinery, and equipment for the work (O.C.G.A. § 36-91-90).
Payment bond claim notices
- If the contractor filed a notice of commencement, a claimant without a direct contract with the contractor must give written notice within 30 days after the notice of commencement is filed or 30 days after its first delivery, whichever is later.
- If no notice of commencement was filed, the claimant must give written notice within 90 days after its last labor or materials, stating the amount claimed.
- Suit may be brought after 90 days from the claimant’s last labor or materials, in the claimant’s own name.
Source: O.C.G.A. § 36-91-93. Deadlines are strict, so claimants should get legal advice early.
How much Georgia contract bonds cost
Performance and payment bonds are usually priced together, commonly about 0.5% to 3% of the contract amount based on the contractor’s finances and experience (NASBP).
Georgia public works bond FAQs
When are performance and payment bonds required in Georgia?
On local government public works construction contracts estimated at more than $100,000.
How much are the bonds?
At least the total amount payable under the contract.
Who does a Georgia payment bond protect?
Subcontractors and anyone supplying labor, materials, machinery, or equipment for the work.
Related guides
- Georgia surety bonds
- Performance bonds
- Payment bonds
- Virginia public works bond
- North Carolina public construction bond
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- South Dakota public works bond
- West Virginia public works bond
- New Mexico public works bond
- Nebraska public works bond
- Kansas public works bond
- Iowa public works bond
- Oklahoma public works bond
- South Carolina public works bond
- Alabama public works bond
- Tennessee public works bond
- Washington public works bond
- Michigan public works bond
- Pennsylvania public works bond
- New Jersey public works bond
- Illinois public construction bond
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 Georgia public project, and a licensed agent will help you set up bonding.
