LA County Bid Bonds
Trusted Surety Solutions for Contractors
Bid bonds are a type of construction bond that protects the project owner or general contractor during the construction bidding process. Bid bonds guarantee that the bidder will compensate the project owner or general contractor if the bidder fails to enter into a contract and provide the required performance and payment bonds. Most public construction projects, including federal jobs, require this bond.
Contractors are advised to thoroughly review the agency’s particular requirements, such as the bid bond amount and whether a specific bid bond form is required.
At CSBA, we help contractors in California secure bid bonds for LA County projects.
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Role of Bid Bonds for Los Angeles County Projects
A bid bond indicates to the project owner that the proposed contractor has been prequalified by the surety company and has the proper financial resources and experience to complete the work. It also provides assurance that the contractor can supply the necessary performance and payment bonds if awarded the job.
Submission and Execution of Bid Bonds
Before submitting a bid bond, it must be duly executed and notarized by an admitted surety company. The admitted surety company must comply with California’s laws and regulations and be authorized to operate within the state.
Los Angeles Bid Bond Forms for Specific Projects
Below are Los Angeles bid bond forms for specific projects to get you started.*
Los Angeles World Airports Bid Bond Form
Los Angeles World Airports (LAWA) will issue a Request for Bid if it seeks contractors for specific projects. In its contracting process, LAWA typically requires a bid bond of 10% of the contract amount.
The Port of Los Angeles Bid Bond Form
The Port of Los Angeles has a bid management system, “The Construction Division Business Opportunity Network (CDBON),” that allows contractors to bid online after signing up for an account.
Los Angeles County Public Works Bid Bond Form
Los Angeles County Public Works also offers Public Works Business Opportunities for contractors, where they can search for and electronically bid on current projects.
* Disclaimer: These forms and resources are valid as of March 6, 2025. Please check the most current requirements and bid specifications for any updated forms. CSBA assumes no liability for usage of these forms.
How Much Do LA County Bid Bonds Cost?
Surety companies generally do not charge for bid bonds. When the contractor is awarded the contract and requires the performance and payment bonds, the surety will then charge a premium based on the contract amount. It’s important for contractors to know the premium rate ahead of their bid, so they can factor it into their bid amount.
The premium rate is a percentage generally ranging between 0.5% and 3% of the contract amount, and the premium will be adjusted at the end of the project based on the final contract amount. If the contract amount increases, the surety will charge an additional premium, and if the contract amount is reduced, the surety will return premium back to the contractor.
CSBA Helps Contractors for LA County Projects
CSBA helps contractors in California obtain bid bonds for LA County projects. Through our comprehensive knowledge, we guide contractors through county requirements and provide bonds for construction bids.
As one of the largest surety-only agents in California, CSBA stands out from other agencies with swift and personalized solutions for our clients. Our team takes the time to understand your unique situation and advise you on how to qualify for the bonds you need.
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Southern California Office
1411 N. Batavia St., Suite 201, Orange, CA 92867
- Fax: (714) 516-9563
FAQs
What Happens to My Bid Bond if I Win the Bidding Process
The bid bond of a successful bidder is retained until they execute the contract and provide performance and payment bonds. The bid bonds of unsuccessful bidders are typically returned. Performance bonds replace bid bonds by covering 100% of the contract price, guaranteeing the work will be completed according to the plans and specifications. Payment bonds guarantee subcontractors, suppliers, and laborers are paid.
Bond Amount for for Public and Federal Projects
Bid bonds are required for all public work projects costing more than $100,000. The bid bond amount is typically 10% of the bid price, including any additive alternatives but this amount can vary. Even though the bid bond is only required for a small percentage of the overall contract amount, the surety company underwrites the bid bond based on the full contract amount. This is because the surety guarantees to provide performance and payment bonds if the contractor is awarded the project.
What Happens to My Bid Bond if I Fail to Comply After My Bid is Accepted
If a contractor fails to execute the contract after being awarded it, the county can claim against the bid bond to the surety company for any difference between their bid and the next lowest bid or, in some cases, the amount of the full penal sum of the bid bond.
Forms of Acceptable Bid Security
Acceptable forms of bid security include:
- Bid bonds issued by a California-admitted surety company.
- Cash, cashier’s checks, or certified checks made payable to the County.
- Irrevocable letters of credit.
While it is technically acceptable for a contractor to provide a cashier’s check or irrevocable letter of credit as bid security, there are risks in doing so. If the contractor is awarded the project but cannot get a surety to provide the performance and payment bonds, the county can keep their bid security. By obtaining a bid bond, on the other hand, a contractor knows that a surety has already prequalified their business and the project, which gives the contractor greater assurance that the surety will provide the performance and payment bonds.
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