A service contract bond guarantees that you will fulfill your contractual obligations to your client. For janitorial, security, IT, landscaping, and other non-construction service providers.
A service contract bond, sometimes called a non-construction performance bond, is a type of surety bond that guarantees a non-construction service provider (such as a cleaning, security, or IT company) will fulfill their contractual obligations to a client.
These bonds protect the client (the obligee) from financial loss if the contractor (the principal) fails to perform the work. They provide security and ensure compliance with the contract terms. Many large commercial clients and most public sector contracts require service contract bonds before they will award the work.
Service contract bonds are commonly required across these service sectors. If you are bidding on a contract that requires a bond, we can write it.
Commercial cleaning contracts for offices, schools, government buildings, and large facilities.
Guard services, patrol contracts, and security monitoring for commercial and public properties.
Grounds maintenance, lawn care, snow removal, and tree services for commercial accounts.
Technology services, managed IT, software implementation, and consulting agreements.
Trash collection, recycling, hazardous material disposal, and dumpster services.
Shuttle services, courier services, fleet management, and contract transportation.
Building maintenance, HVAC service contracts, equipment maintenance, and repair services.
Catering, pest control, staffing, and other non-construction service contracts. Ask us about your industry.
Every service contract bond involves three parties working together.
The service provider. You buy the bond and promise to perform the work according to the contract.
The client receiving the service. They require the bond to protect themselves financially if you fail to perform.
The company issuing the bond. They guarantee your performance and pay valid claims up to the bond amount.
Protects your client against contractor default, especially important in contracts involving public funds or large commercial accounts.
Being bondable signals to clients that you are a qualified business with a solid track record. It separates you from competitors who cannot get bonded.
A bond is a cost-effective alternative to providing a bank letter of credit or a large cash deposit. It frees up your working capital while still meeting the requirement.
Many public sector and large commercial contracts require a service contract bond before they will award the work. Being bondable opens these doors.
Your client has financial recourse if anything goes wrong. That security makes them more comfortable signing a multi-year service agreement with you.
Some industries require bonds as a condition of doing business with specific client types. A bond keeps you compliant and contract-ready.
The cost of a service contract bond is a small percentage of the total bond amount. You do not pay the full bond amount, only the premium.
Rates vary based on the bond amount, the contract terms, and the principal's credit and financial strength. Strong credit and a solid track record qualify for the best rates.
These two bonds get confused often. They serve very different purposes.
| Service Contract Bond | Fidelity Bond | |
|---|---|---|
| What it covers | Performance and contract obligations | Dishonest acts by employees (theft, fraud) |
| Who it protects | Your client (the obligee) | Your client and your business |
| Triggered by | Failure to perform the contract | Employee dishonesty |
| Typical requirement | Required to win the contract | Required by some industries or clients |
| Type of bond | Surety bond (performance) | Surety bond (dishonesty) |
Send us the contract requirements and bond amount. We will get you a quote fast, no obligation. Most bonds issued the same day.