Bid Bonds

  • These bonds guarantee to the oblige/owner that the bonded principal will perform according to the terms of a written contract.
  • Guarantee a contractor, if the low bidder, will enter into a contract and provide the required performance and payment bonds.
  • Often required when a contractor bids on public projects
  • Can be used on public or private bids
  • Usually 5-20% of the contract bid price