Inquiries and applications submitted through SuretyPH are endorsed to the relevant duly licensed insurance company. Approval is subject to verification of submitted information, eligibility requirements, and the underwriting guidelines of that insurance company.

Beginner Guides

Types of Surety Bonds

The surety bonds most often required in the Philippines and what each one secures.

Published Jul 1, 2026

Procurement and construction bonds

Bidder's bond

Filed with a bid to show the bidder is serious and will honour an award. Typical basis in government procurement is 5% of the approved budget for the contract when posted as a surety bond.

Performance bond

Secures faithful performance of the contract once awarded. For government contracts a surety bond posting is commonly 30% of the contract amount.

Payment bond

Covers the principal's payment obligations to suppliers, subcontractors, and labour.

Advance payment bond

Secures the mobilisation or advance payment released by the obligee, and typically reduces as the advance is recouped through progress billings.

Warranty or guarantee bond

Covers defects that appear during the warranty period after completion or acceptance.

Court and regulatory bonds

Judicial or court bond

Required by courts in actions such as injunction, attachment, and replevin.

Supersedeas bond

Filed to stay execution of a judgment pending appeal.

Customs bond

Required for importation and customs undertakings, including warehousing and re-export commitments.

Accountability bonds

Fidelity bond

Covers loss arising from the dishonest acts of accountable officers or employees. Frequently required for treasurers, cashiers, and other officials handling funds.

Choosing the right one

You rarely get to choose. The obligee's document — the invitation to bid, the contract, the court order, or the regulator's circular — names the bond type, the required amount or percentage, and the validity period. Use that document as your source of truth, and match it exactly when you apply.

Typical percentages are indicative only

The percentages above are common market and procurement practice, not fixed rules. Always confirm against the obligee's requirement, and remember that the final terms of any bond are set by the authorized issuing insurance company.