Bid bonds are the entry ticket for many public and private bids.
In this article
What it guarantees
You will sign and provide bonds.
Amounts
Often a percentage of the bid.
Keep reading — free
The rest of this article is worth the 20 seconds
Tell us where to send it and the full piece unlocks right here, along with everything else on this blog.
Rather just talk? Message us on WhatsApp.
Surety
Approval before bid day.
Withdrawing
Strict rules.
Timing
Request early.
A closer look
Bid bonds look like paperwork, but they tie your company to the number you submit. A big math error discovered after bid opening can become an expensive problem. Strong estimating checks protect the bond and your relationship with the surety.
Where to start
Ask your surety for bid bond turnaround times and requirements.
An example
A contractor caught a large error before submission thanks to a final review checklist, avoiding a costly bid bond issue.
Common mistakes
Late requests, sloppy bids and not reading the bond form.
What to track
Track bids bonded, bonds requested late and errors caught.
Questions to ask
How fast can our surety issue a bid bond? Who reviews the final number? Do we understand the withdrawal rules?
Run tighter jobs and win the right ones.
We help construction companies build the systems, online presence and client relationships that bring better projects.
Frequently asked questions
What happens if a contractor wins and refuses to sign?
The owner may make a claim on the bid bond, typically for the difference between your bid and the next bid, up to the bond amount, depending on the bond terms.