Because bid bonds as small, usually 2.5% to 10% of the total project proposal, it would seem simple for a surety company to just just charge a fee and issue them. \u00a0So why don’t we write them freely? \u00a0The answer is in the nature of the bid bond obligation. \u00a0A bid bond is a guarantee that IF you are the winning bidder on the project that the surety WILL replace the bid bond with the appropriate payment and performance bonds or forfeit the bid bond amount. \u00a0We must assume that you are submitting reasonable bids and will therefore likely be a winner. \u00a0We must qualify you for the performance\/payment bond package, NOT the bid bond amount. \u00a0So as an example, while you may qualify for $25,000 in surety credit, you may not qualify for $250,000.<\/p>\n
Caught in a time crunch to submit a bid bond? \u00a0We are fast, and we have alternative collateralization options for same day issue bonds.<\/p>\n","protected":false},"excerpt":{"rendered":"