Jan 6, 2025 · What Is a Bid Bond? A bid bond is a type of surety bond that guarantees a contractor will honor their bid and sign the contract if awarded. It acts as a financial safety net …

Jun 11, 2025 · For example, a contractor that is making a $250,000 bid to provide roofing for an elementary school will have to submit a bid bond of $50,000. This bid bond is required along …

Bid bonds aren't the flashiest part of construction, but they can make or break your ability to win work. If you're bidding on public projects or any job where the owner needs assurance that you …

A 5% bid bond means the bond amount must be equal to 5% of your total bid. For example, if you’re bidding $200,000 on a project, you’ll need a $10,000 bid bond.

Apr 11, 2025 · Example: A construction contractor, eager to secure a major government contract, applies for a bid bond with a reputable surety company. After a thorough financial evaluation, …

Aug 18, 2025 · What is Bid Bond an Example of? Bid bonds are an example of surety bonds that general contractors purchase while bidding on a project or enter into a contract to perform the …

Jan 23, 2025 · Rocket Lawyer offers this Free Bid Bond document to use once you are ready to enter into a Bid Bond and you want to define the terms and conditions of the agreement. …

Dec 10, 2024 · For example, for a $500,000 bid, the contractor will have to secure a bid bond for $50,000. That $50,000 serves as a guarantee that the contractor will complete the project for …

What Is a Bid Bond in Construction? A bid bond is used as financial security for contract bid proposals — especially for large projects such as commercial developments. Project …