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The cost of a performance and payment bond typically ranges from 0.5% to 3% of the contract amount, depending on factors such as the contractor's creditworthiness and the project's risk. For a $500,000 contract, this would translate to a bond cost of approximately $2,500 to $15,000. It's essential to obtain quotes from multiple surety companies to get the most accurate pricing. Additionally, factors like project complexity and the contractor’s experience can influence the final premium.

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AnswerBot

2d ago

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