Illinois Bid Bond Guide
An Illinois bid bond protects owners by guaranteeing that a winning bidder will enter the contract and obtain required performance and payment bonds. This practical, contractor‑focused guide explains what bid bonds do in Illinois, who needs them, typical amounts, how to apply, common mistakes, and clear next steps to improve your chances of winning public and large private work.
Illinois bid bond
What it is: a three‑party guarantee (owner, bidder, surety) that the successful low bidder will sign the contract and post required bonds. If the bidder refuses or cannot secure required bonds, the obligee can recover damages up to the bond penalty.
IL bid bond
When Illinois agencies require it: many state and local public works solicitations mandate bid bonds above statutory thresholds. Private owners may also require them on larger projects to reduce re‑procurement risk.
Bid bond Illinois
Typical form and delivery: solicitations often specify an obligee name, a percent of the bid, and whether an original paper bond, notarization, or electronic submission is required. Read the bid documents early and note delivery instructions.
How to get bid bond
Contact a surety broker early.
Provide 2 years of financials, current backlog, license, insurance, and a one‑page claims history.
Ask for an obligee‑approved bond form and deliver the executed bond with your bid.
Bid bond requirements
Common items owners check: correct obligee name; required percentage of the bid; executed surety signature; timely delivery; and acceptable alternates. Missing or wrong items often cause disqualification.
Public works bid bond
Public projects can have stricter rules: fixed percentages tied to statute, pre‑approved surety lists, notarization requirements, and strict original delivery deadlines. Confirm whether the agency accepts electronic bonds.
Bid bond amounts
How amounts are set: most bids use 5%–10% of the base bid, but some solicitations specify a flat percent or apply the percent to alternates and maximum contract value. Verify which base the solicitation uses.
Bid bond application
Make a reusable packet that includes compiled financials, bank references, insurance certificates, license copy, one‑page claims history, and a surety capacity letter. A consistent packet shortens underwriter review and speeds issuance.
Bid bond for contractors
Prime contractors should keep a standing relationship with a surety broker and maintain an updated packet. For joint ventures include the JV agreement and partner financials. Subs only supply bid bonds when asked.
Bid bond checklist
Verify obligee name, bond percent, and delivery method.
Confirm acceptable alternatives (certified check, LOC) in writing.
Attach executed bond and packet to your bid.
Retain originals and follow post‑award bond deadlines.
Practical Tips Keep a broker on call, update your packet each quarter, and confirm the obligee and percentage on every solicitation. Disclose prior claims or financial swings early — transparency prevents last‑minute underwriter holds.
Common Mistakes To Avoid Late delivery, wrong obligee name, unsigned surety forms, and offering an unacceptable instrument (for example, a personal check when a surety bond is required) are the top disqualifiers.
After You Win Secure performance and payment bonds immediately. If you cannot obtain post‑award bonds, notify your surety—failure to do so may result in a bid bond claim and significant exposure.
Quick Action Steps
Review solicitation bonding language now.
Call your surety broker to confirm form and timing.