How to Get a Payment Bond Fast
In California construction projects, payment bonds play a critical role in protecting subcontractors, suppliers, and laborers. If you’re working on a public or bonded private project, a payment bond ensures you get paid—even if the general contractor fails to pay.
This guide explains what a payment bond is, why it matters to subcontractors in California, and how to get a payment bond fast so your project stays on track.
Call 310-954-2006 to speak with a bond specialist or apply online to get started.
What Is a Payment Bond?
A payment bond is a type of contract surety bond that guarantees payment to:
Subcontractors
Laborers
Material suppliers
If the bonded contractor does not pay, eligible parties may file a claim against the payment bond to recover the amounts owed.
Payment bonds are commonly issued together with performance bonds on construction projects.
Why Payment Bonds Matter for Subcontractors in California
Protection on Public Works Projects
In California, mechanic’s liens are not allowed on public works projects. Instead, payment bonds are the primary form of financial protection for subcontractors and suppliers.
These requirements are governed by the California Little Miller Act, which mandates payment bonds on most public construction contracts.
Security on Private Construction Projects
Many private owners also require payment bonds to:
Protect subcontractors from nonpayment
Reduce disputes and legal exposure
Keep projects moving without interruption
How to Get a Payment Bond for Subcontractors in California Fast
Work With a California Surety Bond Specialist
Speed starts with experience. Working with a surety agency that specializes in California contract bonds helps avoid delays and underwriting issues.
EVERYBOND works with multiple A-rated surety carriers to issue payment bonds efficiently.
Call 310-954-2006 or apply online to begin the process.
Prepare the Required Information
To get approved quickly, be prepared to provide:
Contractor license information
Contract amount
Project owner and job details
Scope of work
Financial information (for larger bond amounts)
Many smaller payment bonds qualify for same-day or next-day approval.
Underwriting Review
Surety companies evaluate:
Credit history
Financial stability
Construction experience
Project size and risk
Qualified contractors are often approved within 24 to 48 hours.
Bond Issuance
Once approved and paid:
The payment bond is issued
Official bond documents are delivered
The project can move forward without delays
Call 310-954-2006 to get a quote today.
How Much Does a Payment Bond Cost in California?
Payment bond premiums typically range from:
1% to 3% of the contract amount for well-qualified contractors
Pricing depends on:
Credit profile
Financial strength
Project size and complexity
Experience
Payment bonds are often bundled with performance bonds at a cost-effective rate.
Payment Bond vs. Performance Bond
Most California construction projects require both bonds:
Payment Bond
Protects subcontractors and suppliers from nonpayment
Performance Bond
Guarantees completion of the construction project
These bonds are usually issued together as contract bonds.
Learn more here:
https://www.everybond.com/contract-bonds/contractor-performance-bond/
Who Is Protected by a Payment Bond?
A payment bond may protect:
First-tier subcontractors
Second-tier subcontractors
Material suppliers
Laborers
Claimants must follow strict notice and timing requirements under California law to preserve their rights.
Frequently Asked Questions About Payment Bonds in California
How fast can I get a payment bond in California?
Many contractors receive approval within 24 hours, with same-day issuance available for qualifying projects.
Are payment bonds required on all California projects?
Payment bonds are required on most public works projects and many private construction contracts.
Can a subcontractor file a claim on a payment bond?
Yes. Subcontractors and suppliers may file a claim if they are not paid, provided notice and deadline requirements are met.
Can I get a payment bond with bad credit?
Yes. Approval may still be possible, though rates may be higher and additional documentation may be required.
Do payment bonds cover change orders?
Coverage depends on the bond and contract terms. Some approved change orders may be included.
Get a Payment Bond in California Today
Whether you are a general contractor securing a bond or a subcontractor working on a bonded project, payment bonds are essential for financial protection.
Call 310-954-2006 to speak with a surety bond specialist or apply online today.
Learn more about contract bonds here:
https://www.everybond.com/contract-bonds/contractor-performance-bond/