If you have been in business for over one year, Payment and Performance bonds are pretty easy to get if you have good credit. Good credit is generally a score over 700 with no bankruptcies.
If the total contract price is under $500,000, you can get a payment and performance bond with a simple one page application with your signature. The turnaround time is generally 24 hours after receipt of a completed application.
If your contract amount is over $500,000, you will need the same good credit score along with a balance sheet and profit and loss statement for the business for the past 2 years. A more extensive application and personal financial statement of all the owners is also required. The turnaround time for these is 48 or 72 hours after receipt of the completed application and required information.
Payment and Performance bonds are like salt and pepper and normally go together in almost all cases. The cost for both of these bonds is generally 3% of the contract price. For example a bond for a contract price of $100,000 would be $3,000 total for the Payment and Performance bond. For jobs over $500,000 the rates are lower but those are calculated by the financial strength of the applicant.
The cost of the bond is like insurance and no money is refunded after the project is completed.