Construction bid bonds are very rarely called. In fact, in our agency’s history, we’ve only seen three bid bond claims. When you consider we issue more than 3,000 bid bonds each year, that’s not very many claims. While that’s positive for contractors, it can also give a false sense of security that bid bond claims …
What Happens When a Construction Bid Bond is Called? Read More »
When contractors submit a bid bond request to their surety company, it is often early on in the bid process, and you may not have much insight into the true cost outside of whatever the project owner’s estimate is, assuming one is provided. That in itself makes it difficult to know what amount to submit …
Best Practices for Handling Bid Bond Increases with Your Surety Company Read More »
A contractor considering public works may wonder what bid bonds are and if they’re required for all tax-dollar funded projects. Public works can be great for contractors, and can lead to more profitable work. It’s important to consider the best steps to take in order to properly prepare for bidding on these types of jobs. …
Even though bid bonds are required by law for construction projects that are funded by tax dollars, it’s still important to understand why it is necessary and how it works. Anything you’re obligated to use should be understood as much as knowing why it’s important and how it can benefit your contractor business, and to …
Being that bid bonds are required by law for construction projects using tax dollars, no matter if it’s local, state, or federal, it’s important to know how they’re calculated to ensure that you get the size bond you need. While no one can be expected to be an expert in all things related to their …
Bid bonds are a type of surety bond that is required when submitting a bid proposal on a public works project. However, a bid bond can also be required when bidding on private projects. Therefore, whether your work is focused in the public or private sector, it’s important to understand what bid bonds are and …
There are many terms in the construction industry that may seem alien or confusing to a contractor, especially if they’re similar. One good example of terms that can confuse is bid bond vs. bid security and what the difference is. Beyond knowing that bid bonds can often be required in order to bid on a …
When a contractor is required to obtain a bid bond, perhaps for the first time, you’ll likely come across information speaking to bid guarantees and wonder what the difference is between them and bid bonds. The surety world can be complex, with financial terms and processes that are alien to most contractors. Below you’ll find …
What a bid bond is, when it’s required, and what the requirements are to get one are all important things to understand as a contractor. They are often an important part of getting the construction jobs you’re after and failing to understand the process of getting one not only can cost you the bid but …
Considering that both bid bonds and performance bonds are essential to the construction industry, it’s important to understand the details of a bid bond vs. performance bond. There are several key differences between the two that not only help your bidding on projects but can grow your contractor business if both bonds are handled well. …