Surety bonds • Virginia
Virginia Public Works Bonds (Va. Code § 2.2-4337): Requirements and Deadlines
Under Virginia Code § 2.2-4337, prime contractors on nontransportation public construction contracts over $500,000, and on state-funded transportation projects over $350,000, must provide performance and payment bonds for the full contract amount. Public bodies may also require bonds on smaller contracts.
This guide covers the thresholds, alternatives to bonds, 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
| Contract type | Threshold | Bonds |
|---|---|---|
| Nontransportation construction (prime contract) | Over $500,000 | Performance and payment bonds for the full contract amount |
| State-funded transportation projects | Over $350,000 | Performance and payment bonds for the full contract amount |
| Smaller contracts | At the public body’s discretion | May be required |
Source: Va. Code § 2.2-4337. Bonds for state agencies are payable to the Commonwealth of Virginia; other public bodies are named directly.
Alternatives to bonds
Under Va. Code § 2.2-4338, a bidder may use a certified check, cashier’s check, or cash escrow in the face amount of the required bond. Personal bonds, property bonds, or bank letters of credit may be allowed on certain designated funds with attorney approval, if they give protection equivalent to a corporate surety bond. This section does not apply to the Department of Transportation.
Payment bond claim deadlines
- Direct claimants may sue if not paid in full within 90 days after their last labor or materials.
- Claimants who contracted only with a subcontractor must give the contractor written notice by registered or certified mail within 90 days after their last labor or materials, stating the amount claimed.
- Suit must be brought within one year after the claimant last performed labor or furnished materials.
Source: Va. Code § 2.2-4341. Deadlines are strict, so claimants should get legal advice early.
How much Virginia 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). See our performance bond and payment bond guides.
Virginia public works bond FAQs
When are performance and payment bonds required in Virginia?
On nontransportation construction contracts over $500,000 and state-funded transportation projects over $350,000, under Va. Code § 2.2-4337.
Can I use cash instead of a bond in Virginia?
A certified check, cashier’s check, or cash escrow in the face amount of the bond is allowed under § 2.2-4338, except for VDOT contracts.
How long do I have to sue on a Virginia payment bond?
Within one year after you last performed labor or furnished materials.
Related guides
- Virginia surety bonds
- Performance bonds
- Payment bonds
- 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
- Georgia 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 Virginia public project, and a licensed agent will help you set up bonding.
