Bid Bonds

Bid bonds guarantee that a contractor that is awarded a contract subsequently enters into the contract and also provides any required performance and payment bonds. The amount of a bid bond is usually a certain percentage of the price of the contract. Qualification for a bid bond demonstrates to the project owner that the contractor should be qualified to undertake the project.

How is the cost of a bond determined?

Some contract surety bond costs are related to a contractor’s qualifications, while others are based on the scope of work or the classification of construction work that is being completed. The contract price is also a factor. Learn more about how the cost of a bond is determined from our Blog.

New to contract bonds? We have the answers to all your questions.

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