Surety Bonds for Bid Bonds
What is a Bid Bond?
A bid bond ensures that the contractor submitting the winning bid, will honor that bid and will not increase the bid after winning the project. It makes sure that the applicant will also enter into the agreement with sound financial backing and will obtain a payment and performance bond if awarded the project. It also guarantees that the contractor will take on the project if it is awarded to him or her.
By requiring a bid bond, the project owner may be more comfortable awarding the project to a contractor, because if the contractor defaults on the bid bond, the project owner can seek compensation from the surety bond company. Another protection for the project owner is that a bid bond will deter contractors from submitting lighthearted bids.
When do I need a Bid Bond?
When bidding for a project, it ensures that one is able to honor the bid and will not increase the bid if awarded the construction project.
Will I always need to apply for a Bid Bond?
Not always, but it is good practice as it will give the project owner the confidence that one will be able to fulfill the project at the bidded amount.
Get a Bid Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!