New York Bid Bond Guide
A New York bid bond protects owners by guaranteeing that the winning bidder will enter the contract and secure required performance and payment bonds. This practical, contractor‑focused guide explains what bid bonds do in New York, who needs them, typical amounts, how to apply, common pitfalls, and clear steps to improve your chances of winning public and large private work.
New York bid bond
What it is: a three‑party guarantee (owner, bidder, surety) that the successful low bidder will sign the contract and obtain post‑award bonds. If the bidder refuses or cannot secure required bonds, the obligee may recover damages up to the bond penalty.
NY bid bond requirements
Read the solicitation carefully for the obligee name, required bond percentage, acceptable bond form, and delivery method. New York public agencies often specify exact language and may require original paper bonds or agency‑approved sureties.
Bid bond NY rules
Common rules: most public works solicitations in New York require bid bonds for projects above statutory thresholds. The solicitation will also state whether alternates, allowances, or maximum contract value factor into bond calculations.
New York bid bond amounts
Typical amounts: many agencies use 5%–10% of the bid; some require a fixed percentage like 10% or a specific dollar threshold. Verify whether the calculation includes alternates or the entire potential contract value.
Bid bond for contractors
What contractors need: current license, insurance certificates, compiled financials, bank references, a concise claims history, and a surety capacity letter. For joint ventures include JV agreements and each partner’s financials.
How to get bid bond
Contact a surety broker early and confirm the agency accepts your surety.
Provide 2–3 years of compiled or audited financials, backlog, license, and insurance.
Request the obligee‑approved bond form and deliver the executed bond with your bid.
New York public works bond
Public works tips: many New York agencies require original, notarized paper bonds by a precise deadline. Check whether electronic submission is allowed and whether the agency maintains an approved surety list.
Bid bond application NY
Make a reusable bid packet: compiled financials, bank references, insurance, license copy, one‑page claims history, and a short company profile. A consistent packet shortens underwriter review and lets your broker issue bonds fast.
Bid bond mistakes
Avoid these: wrong obligee name, incorrect bond percentage, unsigned surety forms, late delivery, or using unacceptable instruments like a personal check when a surety bond is required. These errors commonly lead to disqualification.
After winning with a bid bond
If you win, secure the required performance and payment bonds immediately. If you cannot obtain those bonds, notify your surety—failure to do so may trigger a bid bond claim and financial exposure.
Practical next steps
Review solicitation bonding language now.
Call your surety broker to confirm acceptable form and timing.
Attach the executed bid bond and packet to your submission and keep originals for follow‑up.