"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.
How Much Does A Bid Bond Cost?
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.
How Do I Get a Bid Bond?
Give our Contract Bond Team a call at 1-800-361-1720 with any additional questions and they can get working for you today on your Bid Bond. Or you can fill out this application below and send it to firstname.lastname@example.org: