Cynthia Baldonado

(623) 518-2982

Small Contract Performance Bonds and Payment Bonds - Bad Credit

This page is dedicated to our non-standard small contract bond program. The bond types covered under this program are Bid Bonds, Performance Bonds, Payment Bonds aka Labor and Material, and Warranty Bonds aka Maintenance Bonds.

For more detailed descriptions of these bond types visit my Bid Bonds, Performance Bonds, Payment Bonds, and Warranty Bonds page.

About The Program

Often contractors with credit issues feel they have nowhere to turn for bonding since the bonding industry is credit driven. Luckily, if you've found this page I can help in most cases.

Our non-standard small contract bond program focuses on contracts that are $350,000 or less. It is a simple and quick application process without a lot of hassle. While it isn't an "anything goes" program with regard to credit, there is certainly more tolerance for imperfect credit.


  • Bid Bonds - Under this program there is a $350 annual set up and maintenance fee for bid bonds. This fee allows for an unlimited number of bid bonds in a 12 month period.
  • Performance and Payment Bonds - It won't cost you anything different if you need one, the other, or both so I've combined these into one category. Premium for these bonds under this program generally range from 3.5% - 5% of the contract price, depending on your credit.
  • Warranty Bonds - These bonds can vary in price, generally between 1% and 5% of the bond amount. Notice I said bond amount vs. contract amount for this one. Warranty bond penalties (the bond amount) are usually only a percentage of the contract amount.

What to Expect

Paperwork requirements under this program are minimal. In addition to a short 2 - 3 page application I need to see the following:

  • Copy of the job contract OR complete bid invitation packet , depending on what stage of the process you are at
  • Bond form(s) required by obligee
  • Bid Tabulation (if project has already bid) - list of bidders and amounts bid for your scope of work

The process usually takes just a couple of days from start to end. If more serious credit issues are present it could take longer as specialty conditions could be introduced.

Not all bonds require specialty conditions. In fact, we can place bonds for many credit-challenged clients without anything more than paperwork and bond premium; but if the underwriter feels it is necessary in a borderline situation, specialty conditions may be introduced as an option to write a bond when otherwise it would have been declined. To read more about the types of specialty conditions that could be presented, please visit my Bid Bonds, Performance Bonds, Payment Bonds, and Warranty Bonds page.

Note: In some cases where very serious credit issues are present you may not qualify for this program. This doesn't mean I can't help you though. We'd simply have to go another route that is more extensive. I can find you an option in most cases.

By: Cynthia Baldonado

Do you have a question or need a bond? Call me at (623) 518-2982. I'm always happy to help! I'm available Monday thru Friday between the hours of 8AM and 5PM Arizona Time. After hours or you'd rather contact me electronically? You can also fill out the Contact Me section on this page and I'll contact you during business hours.

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(623) 518-2982

About This Site

SuretyBonds.Biz is a website for Viking Bond Service, Inc. producers to provide information about frequently requested surety bonds in their words. Viking producers specialize in surety bonds of all types. Since bonds are the sole product provided by Viking, the producers are an excellent resource for information and assistance.