Bid Bond

If you’re looking to bid on a project or tender that requires a bid bond, you’ve come to the right place! We provide full contract bonding services to our clients for all types of projects. In order to obtain the ability to provide a bid bond, you’ll require what we call a bond facility. Learn more below and apply today!

Bid Bond

What is a Bid Bond?

A Bid Bond is a financial guarantee document provided to the project owner stating that you have the capability to take on and implement a project should you be selected during the tender / bidding process. Bid Bonds are important to show proof to the project owner that you are able to comply with a bid contract and can accomplish said job as laid out in the contract, prior to being awarded the job. The typical and most common amount of a Bid Bond is 10% of the Tender Price being submitted.

Why do I need a Bid Bond?

Bid Bonds are required by many project owners for substantial sized jobs (usually > $50,000) including private and municipal contracts. From the owners perspective, requesting a bid bond will keep contractors from submitting frivolous bids, because the Bid Bond creates an obligation to perform the job, or forfeit the stated Bid Bond amount should the bidder not be able to proceed with the contract scope.

How much does it cost?

The cost of a Bid Bond will depend on the type of Bond Facility you’d like and which of our options would be most beneficial and cost effective for your company. At Netsurance, we are able to issue Bid Bonds for anywhere from $0 – $250 per bond, depending on facility options, financial standing, and other variables.

The ability to obtain any contract bonds (including a Bid Bond), as stated above, is part of an annual subscription called a Bond Facility which is typically in the range of $1,500 – $5,000 per year.