Surety Bond Premium (Tiered Rate)
Tiered premium per $1,000 of contract: $25/$15/$10 per thousand on the first $100k / next $400k / above $500k.
Example
You enter
- Contract value to bond ($) 500000
- Rate on first $100k ($/thousand) 25
- Rate on next $400k ($/thousand) 15
- Rate above $500k ($/thousand) 10
You get
- Bond premium $8500
- Effective rate 0.017
Details, formula, and sources
A $500,000 contract -> $8,500 (1.70%); a $2.5M job adds $20,000 for $28,500 (1.14%, the top band blends lower). The premium is a bid cost. The surety's rate schedule and underwriting govern.
premium = sum over bands of (contract in band / 1000) x band_rate; band rates $25/$15/$10 per $1,000 on first $100k / next $400k / above $500k; rate% = premium / contract.
A tiered surety-bond premium on a performance/payment bond, priced per $1,000 of contract value on a declining-rate schedule, by name.
The tiered per-$1,000 bond-rate structure is a standard published surety-pricing method; the specific rates are user-supplied defaults.
Estimate. AHJ and licensed professional govern.
Field names used by the API: contract_usd, rate1_per_k, rate2_per_k, rate3_per_k, premium_usd, effective_rate
- Tiered rate premium = sum of (band amount / 1000) x band ratesurety rate schedule
- Default bands $25 / $15 / $10 per $1,000 on first $100k / next $400k / above $500kcommon surety pricing
- Underwriting governs the surety's filed rates and underwriting set the actual premiumscope of this tile