With South Coast Surety, we offer a flat annual fee of $350 to fulfill all Bid Bonds for your business. Hopefully you are bidding on many contractor jobs per year, and winning lots of them. We are here to help you through each entire project, including Payment and Performance Bonds and other final bonds like Warranty Bonds.
Give our contract bonding team a call today at 800-361-1720 to get started talking about your upcoming project and contract bonding line. Or fill out the application below and a contract surety expert will reach out to you today.
What Is a Bid Bond?
“The bid bond assures that the bid is submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.” (Source: NASBP.org)
A Bid Bond is issued by the Surety to the owner of the project in lieu of a required cash deposit. The cash deposit (usually 10% of the bid amount) is subject to full or partial forfeiture if the contractor is the low bidder and fails to either execute the contract or provide the required Performance and/or Payment Bonds. In other words, the Bid Bond assures and guarantees that should the bidder offer the low bid, the bidder will execute the contract and provide the required surety bonds.