Federal vs. State: How Performance Bond Requirements Work
A performance bond guarantees that a contractor will complete a construction project according to the contract terms. If the contractor defaults, the surety steps in to finish the work or compensate the owner. On public (government-owned) projects, performance bonds protect taxpayers from the cost of a failed contract — which is why they're required by law above certain thresholds.
Whether a performance bond is required, and at what threshold, depends on who owns the project:
- Federal projects — the Miller Act. Under 40 U.S.C. §§ 3131–3134, a performance bond is required on federal construction contracts exceeding $150,000, issued together with a payment bond (each typically 100% of the contract price).
- State & local projects — "Little Miller Acts." Every state has its own version, but the dollar threshold, bond amount, and rules vary widely. That's what the table below covers.
- Private projects. Performance bonds are not legally required, but many private owners and lenders require them by contract.
Performance bond vs. payment bond — why the thresholds sometimes differ: A performance bond guarantees the work gets completed; a payment bond guarantees subcontractors and suppliers get paid. On most public projects the two are issued together, but their triggers aren't always identical. In Texas, for example, a performance bond is required over $100,000 while a payment bond triggers at just $25,000. And in a few states (Missouri, Nebraska, New Hampshire), the Little Miller Act statute technically mandates only a payment bond — the performance bond is required by the public owner's bid documents instead. We flag every one of these differences in the table below.
How we verified this data: The thresholds below were checked against each state's official statute (linked in the Statute column) and last reviewed in July 2026. We deliberately did not rely on third-party aggregator tables, which we found to contain material errors for several states (for example, outdated North Dakota, Oklahoma, and Wyoming figures). Rows marked Confirm locally or Consult counsel have nuances (administrative thresholds, combined bonds, or statutes that mandate only a payment bond) that warrant a direct check before you rely on them.
Important — Please Verify Before Relying: State bonding laws change (several thresholds were raised in recent years), contain exemptions, and can differ for state vs. local vs. transportation projects. The figures below are provided for general educational purposes and reflect our understanding as of July 2026. Before making bonding or bidding decisions, confirm the current requirement with the relevant state agency, the contracting public entity, the bid documents, or an attorney licensed in your state. Nothing on this page is legal advice.
Performance Bond Threshold by State
The Threshold column shows the contract dollar amount above which a performance bond is generally required on public projects. The Bond Amount column notes the required bond size (most states are 100% of the contract, but several are lower or discretionary). Click any statute to read the official state law. States we have a dedicated guide for are linked in the first column.
| State | Performance Bond Threshold | Bond Amount | Statute (Official Source) | Notes |
|---|---|---|---|---|
| Alabama | Over $100,000 | 100% of contract | Ala. Code § 39-1-1 | Same threshold as the payment bond; the performance bond is 100% (payment bond is set at ≥50%). Verified |
| Alaska | Over $100,000 | Tied to payment bond (sliding scale) | AS 36.25.010 | Performance bond amount is set equal to the payment bond (50% up to $1M, then lower). Municipality may exempt ≤$400K by ordinance. Verified |
| Arizona | All public contracts | 100% | A.R.S. § 34-222 | The bond statute sets no dollar floor — a performance bond is required before any public works contract is executed. The practical trigger comes from the procurement code. Confirm locally |
| Arkansas | Over $50,000 | Combined bond (100%) | Ark. Code § 22-9-401 et seq. | Arkansas uses a combined statutory bond covering labor/materials and performance. Confirm the exact trigger with the state. Confirm locally |
| California | Set by awarding entity | State ≥50% | Cal. Pub. Contract Code § 10221 | Differs from the payment bond: performance requirement/amount is set by the awarding entity, not tied to the $25K payment-bond trigger. State contracts ≥50%. Verified |
| Colorado | Over $50,000 (local) / $150,000 (state) | ≥50% (combined) | C.R.S. § 38-26-106 | Single combined bond secures both performance and payment; penal sum ≥50% of the contract. State contracts use a higher (~$150K) threshold. Verified |
| Connecticut | Discretionary (separate from payment) | Set by awarding authority | Conn. Gen. Stat. § 49-41 | Differs: the mandatory >$100K bond is a payment bond. A performance bond is discretionary and can't be required for a general bid under $25K / sub-bid under $50K. Confirm locally |
| Delaware | Large public works (~$50K–$100K+) | 100% | 29 Del. C. § 6962 | Both performance and payment bonds required on large public works (100%). The exact dollar line is set administratively by the CPAC — confirm the current figure. Confirm locally |
| Florida | State over $100,000 / local over $200,000 | Contract amount (combined) | Fla. Stat. § 255.05 | The statute mandates a combined payment-and-performance bond, but the performance element is waivable for local contracts ≤$200K. The payment bond is the mandated protection. Confirm locally |
| Georgia | Over $100,000 | ≥100% | O.C.G.A. § 13-10-40 | Performance threshold ($100K) differs from Georgia's payment-bond threshold ($250K after 2025's HB 137). Performance bond is at least 100% of the contract. Verified |
| Hawaii | Over $25,000 | 100% | HRS § 103D-324 | Same section, threshold, and 100% amount for both performance and payment bonds. Verified |
| Idaho | $50,000 or more | ≥85% (not 100%) | Idaho Code § 54-1926 | Same threshold as payment bond; both fixed at no less than 85% of the contract, not 100%. Verified |
| Illinois | Over $150,000 | Contract amount (combined) | 30 ILCS 550/1 | A single bond covers both completion (performance) and payment. $150K through Jan 1, 2029, then reverts to $50K. Verified |
| Indiana | More than $200,000 | 100% | IC 36-1-12-14 | The performance bond is in a separate section (IC 36-1-12-14) from the payment bond (IC 36-1-12-13.1); both 100%, both over $200K. Verified |
| Iowa | $25,000 or more | ≥75% (combined) | Iowa Code § 573.2 | A single bond secures both performance and payment; fixed at not less than 75% of the contract price. Verified |
| Kansas | Set by contracting body | Typically 100% | K.S.A. § 60-1110 | Differs: the statutory § 60-1111 bond (>$100K) is a payment bond, not a performance bond. Kansas has no single statutory performance-bond threshold — it's imposed by the contracting agency. Consult counsel |
| Kentucky | Over $100,000 (local) | 100% | KRS § 45A.435 | Local agencies: both performance and payment bonds at 100%, over $100K. State-agency contracts use a separate, lower threshold (KRS 45A.190). Verified |
| Louisiana | Over $25,000 | ≥50% (not 100%) | La. R.S. § 38:2241 | Louisiana's Public Works Act bond is a statutory bond (≥50%, not 100%). A separate faithful-performance bond appears in R.S. 38:2216 for state contracts (waivable ≤$50K). Confirm locally |
| Maine | Over $125,000 | 100% | 14 M.R.S. § 871 | Separate performance and payment bonds, both 100%, same over-$125K threshold. Verified |
| Maryland | Over $100,000 | Discretionary (adequate) | Md. State Fin. & Proc. § 17-103 | Differs: performance security is an amount the public body considers adequate (often 100%), while payment security is set at ≥50%. Trigger keys off the 'small procurement amount' ($200K for DGS/DOT). Confirm locally |
| Massachusetts | Over $150,000 (buildings) | 100% | M.G.L. c. 149, § 44E | Public building performance bond is 100% (§ 44E, tied to the competitive-bid regime). This is distinct from the § 29 labor-and-materials (payment) bond of ≥50%. Verified |
| Michigan | More than $50,000 | ≥25% (not 100%) | MCL 129.202 | Same threshold as the payment bond, but the performance bond is fixed by the governmental unit at no less than 25% of the contract — not automatically 100%. Verified |
| Minnesota | More than $175,000 | ≥100% | Minn. Stat. § 574.26 | Both performance and payment bonds required, each not less than the contract price. State/MnDOT contracts may set the performance bond at ≥75%. Threshold cross-references § 471.345. Verified |
| Mississippi | $25,000 or more | 100% | Miss. Code § 31-5-51 | Same threshold both. Under $25K, the public body may elect a lump-sum payment in lieu of bonds. Verified |
| Missouri | Payment bond mandated; performance by contract | Set by public entity | RSMo § 107.170 | Differs: the statute (>$50K) mandates a payment bond, not a performance bond. Performance bonds in Missouri are required by the public owner's bid documents, not by statute. Consult counsel |
| Montana | Waivable under $150,000 | 100% (agency-set, combined) | Mont. Code § 18-2-201 | Single combined bond for performance and payment; may be waived under $150K (schools under $7,500). The statute doesn't fix a percentage — 100% is the customary/agency-set amount. Confirm locally |
| Nebraska | Payment bond mandated; performance by contract | Payment 100% | Neb. Rev. Stat. § 52-118 | Differs: the statute mandates a payment bond (100%), not a performance bond. Exempt below $15K (state) / $10K (local). Performance bonds are imposed by contract. Consult counsel |
| Nevada | Over $100,000 | ≥50% (not 100%) | NRS 339.025 | Same threshold as payment bond; both fixed by the contracting body at no less than 50% of the contract amount — not automatically 100%. Verified |
| New Hampshire | Payment bond mandated; performance by contract | Payment 100% | RSA 447:16 | Differs: the statute mandates payment security (100%): $75K state / $125K subdivision. A performance bond is required by the owner's contract, not by RSA 447:16. Consult counsel |
| New Jersey | Over $200,000 (state) / $100,000 (local) | 100% (combined) | N.J.S.A. 2A:44-143 | A single bond covers both performance and payment at 100%. Thresholds are tiered by contracting entity ($200K state / $100K local & school). Verified |
| New Mexico | Over $25,000 | 100% | N.M. Stat. § 13-4-18 | Both bonds required together, each 100% (may be reduced to ≥50% at the purchasing agent's discretion). Verified |
| New York | $100,000 | Typically 100% | N.Y. State Finance Law § 137 | Performance and payment bonds may be dispensed with below $100K for state public improvement contracts. The requirement is partly driven by agency bid documents. Confirm locally |
| North Carolina | Over $300,000 (local) / $500,000 (state) | 100% | N.C. Gen. Stat. § 44A-26 | Two-tier by owner; a bond is required from any single contractor whose contract exceeds $50K. Performance and payment bonds share thresholds, both 100%. Verified |
| North Dakota | Over $250,000 | ≥100% (combined) | N.D. Cent. Code § 48-01.2-10 | Single combined bond covering both performance and payment. (The $100K/$200K figures on some sites are outdated — the statute reads 'in excess of $250,000.') Verified |
| Ohio | All public contracts | 100% (combined) | Ohio Rev. Code § 153.54 | No dollar floor in the bond statute — the successful bidder files a combined performance-and-payment bond for the full contract. The effective trigger is the entity's competitive-bidding threshold. Confirm locally |
| Oklahoma | Over $100,000 | 100% | 61 O.S. § 113 | Same $100K threshold for the performance bond and the statutory payment bond. (The $50K figure on some sites applies only to CM trade contracts/subs.) Verified |
| Oregon | Over $100,000 ($50,000 transportation) | 100% | ORS 279C.380 | Same threshold as payment bond; both 100%. Transportation projects use a $50K trigger. The performance bond is waivable (the payment bond is not). Verified |
| Pennsylvania | Over $5,000 | 100% | 8 P.S. § 193 | Performance bond at 100% under the 1967 Public Works Contractors' Bond Law, over $5,000. (The $10K figure some sites cite relates to retainage, not the bond trigger.) Verified |
| Rhode Island | $150,000 (roads/bridges) / $50,000 (general) | 50%–100% (combined) | R.I. Gen. Laws § 37-12-1 | Genuinely tiered and split across chapters. A single combined bond runs 50%–100% of the contract (agency sets within that range). Confirm locally |
| South Carolina | Over $50,000 | 100% | S.C. Code § 11-35-3030 | May be waived for contracts of $50K or less. Performance and payment bonds share the threshold; performance is 100% of the contract (excluding O&M/finance costs). Verified |
| South Dakota | Over $50,000 | 100% (combined) | SDCL § 5-21-1 | Single combined performance-and-payment bond at 100%. The State waives bonds on state projects where the awarded contract is $50,000 or less (§ 5-21-1.1). Verified |
| Tennessee | Over $100,000 | ≥25% (not 100%) | Tenn. Code § 12-4-201 | A single contractor's bond secures performance and payment; the statutory minimum is 25% of the contract (often written at 100% in practice). Verified |
| Texas | Over $100,000 | 100% | Tex. Gov't Code § 2253.021 | Differs from the payment bond: performance is required over $100K, while the payment bond triggers over $25K (or $50K for municipalities). Both 100%. Verified |
| Utah | Over $50,000 | 100% | Utah Code § 63G-6a-1103 | Both performance and payment bonds required at 100% on execution. The $50K trigger is set by administrative rule (R33-111), not the statute itself. Verified |
| Vermont | Over $100,000 | 100% | 29 V.S.A. § 161 | Performance and payment bonds required over $100K, both 100%; the Secretary may waive the performance bond at or below $100K. (Cite § 161 — not '18 V.S.A.' or '$500K.') Verified |
| Virginia | Over $500,000 ($350,000 transportation) | 100% | Va. Code § 2.2-4337 | Performance and payment bonds share the $500K threshold ($350K transportation), both 100%. For nontransportation contracts $100,001–$500K where bonds are waived, prequalification is required instead. Verified |
| Washington | All public works | 100% (combined) | RCW 39.08.010 | A single combined bond secures performance and payment. On contracts ≤$150K, the contractor may elect 10% retainage in lieu of a bond. Cities may fix 25%–100% by ordinance. Verified |
| West Virginia | Over $50,000 | 100% (combined) | W. Va. Code § 5-22-1 | A sufficient performance-and-payment bond is required over $50K. (Older versions/aggregators citing $25K are outdated.) Verified |
| Wisconsin | Over $148,000 (state) / $74,000 (local) | 100% (combined) | Wis. Stat. § 779.14 | A single payment-and-performance bond at 100%, tiered by entity. (The biennial indexing was repealed in 2017 — these figures are fixed, not auto-adjusted.) Verified |
| Wyoming | Over $150,000 | 100% (combined) | Wyo. Stat. § 16-6-112 | A single bond conditioned on both performance and payment, 100%. Raised from $50K to $150K in Wyoming's 2020 public-works overhaul. Verified |
| Washington, D.C. | Over $25,000 | Discretionary (not 100%) | D.C. Code § 2-201.01 | Differs in amount: the performance bond is set at an amount the Mayor deems adequate (not a flat 100%), while the payment bond follows a sliding scale. Same $25K trigger. Confirm locally |
Legend: Verified confirmed against primary statute Confirm locally nuance/administrative figure — check current value Consult counsel statute mandates only a payment bond, or is otherwise narrow/ambiguous.
What the Table Shows (Beyond the Numbers)
A few patterns are worth understanding before you rely on a single threshold:
- The performance bond isn't always 100%. Most states require a performance bond equal to 100% of the contract, but several don't — Michigan sets a 25% floor, Nevada 50%, Tennessee 25%, and the District of Columbia leaves the performance-bond amount to the awarding official's discretion.
- Some states bundle performance and payment into one bond. Colorado, Illinois, Iowa, North Dakota, South Dakota, Washington, West Virginia, Wisconsin, and Wyoming use a single combined bond that secures both completion and payment — so there's one threshold, not two.
- A few states mandate only a payment bond by statute. In Missouri, Nebraska, and New Hampshire, the Little Miller Act requires a payment bond; the performance bond is imposed by the public owner's contract or bid documents rather than by statute. Don't assume "no statutory performance bond" means none is required — in practice, owners almost always require one.
- The performance threshold can differ from the payment threshold. Texas (performance over $100,000 vs. payment over $25,000), Georgia (performance over $100,000 vs. payment over $250,000), and California (performance set by the awarding entity, separate from the $25,000 payment trigger) are the clearest examples.
- Some states have no dollar floor. Arizona and Ohio effectively require a performance bond on public construction contracts regardless of a specific dollar amount (subject to the bidding process).
- Thresholds change. North Dakota is $250,000 (not the $100K/$200K some sites list), Oklahoma rose to $100,000, Wyoming to $150,000, and West Virginia to $50,000. Always confirm the current figure.
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Frequently Asked Questions
No. On federal projects, the Miller Act requires a performance bond on construction contracts exceeding $150,000. On state and local projects, each state has its own "Little Miller Act," and the threshold varies widely — from no minimum (bonds on all public contracts) in states like Ohio to $500,000 in Virginia. In several states the performance-bond threshold differs from the payment-bond threshold, and a few set the required performance bond below 100% of the contract price.
Under the Miller Act (40 U.S.C. §§ 3131–3134), a performance bond is required on federal construction contracts exceeding $150,000, alongside a payment bond. Both are typically 100% of the contract price. The performance bond protects the government owner by guaranteeing the contractor will complete the project according to the contract.
Not always. Most states require a performance bond equal to 100% of the contract price, but several do not — for example, Michigan sets a minimum of 25%, Nevada 50%, and Tennessee 25% (though contracting bodies often require more). A handful of states, including the District of Columbia, leave the amount to the awarding entity's discretion. Always confirm the required amount for your specific state and project.
A performance bond guarantees the contractor will complete the project according to the contract; if the contractor defaults, the surety ensures the work is finished. A payment bond guarantees that subcontractors, laborers, and suppliers get paid. On most public projects the two are issued together, but their thresholds and required amounts can differ by state — and in a few states (such as Missouri, Nebraska, and New Hampshire) the Little Miller Act statute mandates only a payment bond, with performance bonds required by the owner's bid documents instead.