Payment and Performance Bond

Arizona Payment and Performance Bond

Contract security for Arizona public and private projects

Payment and performance bonds protect Arizona project owners and subcontractors when the contractor defaults on performance or payment obligations.

Overview

What Is a Arizona Payment and Performance Bond?

Arizona payment and performance bonds are surety instruments that guarantee contract completion and payment of labor and materials up to the penal sum.

Key Provisions
  • Guarantees compliance with Contract documents - A.R.S. public works bonding requirements as applicable
  • Protects the obligee named on the Arizona bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Contract documents - A.R.S. public works bonding requirements as applicable up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Project owner or public agency named in the contract
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Arizona obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Contract documents - A.R.S. public works bonding requirements as applicable
  • Satisfy Project owner or public agency named in the contract filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Prime contractors awarded Arizona public works and many private projects that require contract bonds need matching payment and performance security.

Who Is Required to File
  • Applicants required by Project owner or public agency obligee
  • Arizona businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Arizona markets
Requirements

What You Need to Apply

Provide the contract, penal sum (often 100% of contract value), obligee, and any agency form required before notice to proceed.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: Usually 100% of the contract amount for payment and for performance on Arizona public and many private projects
  3. Arizona obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Arizona requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Project owner or public agency obligee.

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to Project owner or public agency named in the contract or for your Arizona filing package.

FAQ

Frequently Asked Questions

What is the required amount for an Arizona payment and performance bond?

The amount is Usually 100% of the contract amount for payment and for performance on Arizona public and many private projects, as set under Contract documents - A.R.S. public works bonding requirements as applicable and confirmed with Project owner or public agency obligee.

Who is the obligee on an Arizona payment and performance bond?

The obligee is typically Project owner or public agency named in the contract. Always match the exact name on the Arizona form.

How long does it take to get the bond?

Many Arizona filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Arizona license or filing does not lapse.

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578