What Is a Bid Bond?
A bid bond (also called a construction bid bond or bid bond application) is a required surety bond that guarantees a contractor will honor their bid, sign the contract if awarded, and provide the required performance and payment bonds. This bond protects project owners from financial loss if a contractor backs out after winning a bid.
A bid bond protects project owners from:
- Contractors withdrawing bids
- Failure to sign the contract
- Inability to provide performance or payment bonds
- Misrepresentation of qualifications
- Financial loss caused by non‑performance at the award stage
If you’re bidding on public or private construction projects, you may be required to submit a bid bond with your proposal.
Bid Bond Amounts and Cost
Bid bond amounts typically equal 5% to 20% of the total bid, depending on:
- Project size
- Owner or government requirements
- Contractor experience
- Contract type
Your premium depends on:
- Bond amount
- Credit score
- Business financials
- Work history and backlog
Most contractors qualify instantly with competitive rates—many bid bonds are issued at no cost for qualified applicants.
Who Needs a Bid Bond
You may need a bid bond if you operate as a:
- General contractor
- Subcontractor
- Construction firm
- Engineering or infrastructure contractor
- Public works contractor
- Commercial builder
Any contractor bidding on bonded projects—especially government or municipal work—may be required to file a bid bond.
Bid Bond Requirements & Eligibility
Project owners typically require:
- Completed bid bond application
- Project bid details
- Contractor financial review
- Work history and references
- Ability to qualify for performance and payment bonds
Most public projects require a bid bond before the bid will be accepted.
How the Bid Bond Application Process Works
1
Complete the Application
Submit the quick, 60‑second bid bond application with project details.
2
Secure the Lowest Rate
We match you with the best rate available from A‑rated sureties.
3
Receive your bond
Same‑day issuance available for immediate bid submission.
Why Contractors Choose Us
- Lowest rates from A‑rated sureties
- Fast approvals for all project sizes
- Digital delivery for immediate bid submission
- Construction bond specialists
- 100% compliance guaranteed
Top Bid Bond Questions Answered
Our most common questions answered efficiently.
Most bid bonds are free for qualified contractors, with premiums applied only to performance and payment bonds.
Many bid bonds are approved the same day, especially for repeat or pre‑qualified contractors.
It guarantees the contractor will honor their bid, sign the contract, and provide required performance and payment bonds.
Once issued, bonds are generally non‑refundable.
Some private owners require them, but they are mandatory for most public and government projects.
