Evergreen Surety has published a new page on surety bonds for service contractors. Service companies outside of construction need the same bid, performance, and payment bonds that construction contractors do. When they’re bidding on government contracts, the Miller Act applies to them too. The page is written for janitorial companies, facilities management firms, security services, waste management operators, and transportation providers. For many of them, this is the first time through the process.
The Miller Act of 1935 requires bid, performance, and payment bonds on federal contracts over $150,000. Most people tie that requirement to construction. The page explains that it covers service contracts as well. A federal janitorial contract, a facilities management agreement with a government agency, or a security services contract for a federal building triggers the same requirements as a construction project of equal value.
State and local thresholds vary by jurisdiction. Colorado requires bonds on state service contracts over $150,000 and on local contracts over $50,000. Corporate clients, healthcare systems, and educational institutions increasingly ask for performance bonds too. Evergreen places those through its commercial surety bond programs.
The page walks through the three core bond types on a bonded service contract, the same ones construction contractors use:
- Bid bonds, which back the bid on a solicitation and typically run 5% or 10% of the bid amount
- Performance bonds, which guarantee the contract is performed on time, at the agreed price, and to the required standard, with a limit equal to the contract value
- Payment bonds, which guarantee subcontractors, suppliers, and labor get paid, issued alongside the performance bond at the same limit
It also covers why a service company’s financials don’t look like a contractor’s, what underwriters want to see, and how the SBA Bond Guarantee Program works for non-construction companies. Evergreen does surety only. No insurance products competing for attention. The agency is appointed with 15 surety carriers and is SBA-authorized, so when one carrier declines a service company account, there are real alternatives. Companies new to bonding can start there.
Service companies with a solicitation deadline or an awarded contract can reach the Evergreen team directly. Megan Burns handles all commercial surety new business. Call her at 720-258-6182 or email mburns@evergreensurety.com.
About Evergreen Surety
Evergreen Surety is an independent surety bond agency based in Littleton, Colorado. The agency is not owned by a carrier or affiliated with a larger insurance group, and is licensed throughout the United States and Canada. Evergreen works with energy producers, developers, contractors, and project teams to place complex bond programs with the carriers that specialize in these risks. For more information, visit evergreensurety.com.
About Tom Patton
Tom Patton is the President of Evergreen Surety and a Certified Construction Industry Financial Professional (CCIFP), leading surety bond programs for contractors, developers, and energy producers across the United States and Canada. Drawing on 15+ years of specialty surety experience and appointments with 15+ carriers, Tom is known for building programs that perform when called upon and solving the bond problems other agents walk away from.
About Eddie Maxfield
Eddie Maxfield is a Surety Advisor at Evergreen Surety, an independent, bonding-only agency serving contractors, developers, and energy producers across the United States and Canada. Working alongside President and founder Tom Patton, Eddie is the first call for new construction and commercial surety bond inquiries, with a focus on building relationships across Colorado and the Rocky Mountain region. Reach him at emaxfield@evergreensurety.com or 720-492-9258.
