Surety bonds • Pennsylvania
Pennsylvania Public Works Bonds (8 P.S. § 193): Performance and Payment Bonds
Under Pennsylvania’s Public Works Contractors’ Bond Law, 8 P.S. § 193, contractors awarded public construction, reconstruction, alteration, or repair contracts exceeding $5,000 must provide a performance bond and a payment bond, each for 100% of the contract amount.
This guide covers when bonds are required, who they protect, filing, 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
Under 8 P.S. § 193, a contractor awarded a contract exceeding $5,000 for the construction, reconstruction, alteration, or repair of a public building or other public work must provide a performance bond and a payment bond, each for 100% of the contract amount. The bonds must be from sureties authorized in Pennsylvania, be payable to the Commonwealth or the contracting body, and be filed with the contracting body.
Who the bonds protect
The performance bond protects the public owner, and the payment bond protects subcontractors and suppliers of labor and materials. Claimants should follow the statute’s notice and suit deadlines carefully and get legal advice early.
How much Pennsylvania 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).
Pennsylvania public works bond FAQs
When are performance and payment bonds required in Pennsylvania?
On public construction, reconstruction, alteration, or repair contracts exceeding $5,000.
How much are Pennsylvania public works bonds?
Each bond is 100% of the contract amount.
Where are the bonds filed?
With the office of the contracting body that awarded the contract.
Related guides
- Pennsylvania surety bonds
- Performance bonds
- Payment bonds
- New Jersey public works 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
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 Pennsylvania public project, and a licensed agent will help you set up bonding.
