What a bid bond does
On most public works and many private projects, the owner requires a bid bond with your proposal. It protects the owner if the winning bidder walks away or cannot furnish the required performance and payment bonds. The bond assures the owner that your bid is serious and that you are bondable for the job.
What it costs
Bid bonds are typically issued at no separate charge, as part of your surety program. The real question a surety answers is whether it would bond the finished contract if you win. That capacity is built up front, which is why working with a broker on your overall program is the key to fast, free bid bonds.
Getting one before a deadline
Once your program is in place, a specific bid bond can be turned around quickly. To move fast we will want:
- The obligee, project name, and bid date
- The estimated contract amount and bid bond percentage required
- A current snapshot of your business and work on hand