Bond guide
Bid bonds
A bid bond assures the owner that if your bid is accepted, you will sign the contract and provide final bonds.
Why it matters
Bid security protects owners from bidders who withdraw after award. Because the surety is effectively pre-approving your performance and payment bonds, it will look at the job size, type, and your backlog before issuing.
Tips
- Request bid bonds well before bid day
- Send the bid documents, bond form, and estimated contract amount
- Confirm the job fits your single and aggregate limits
- Check whether the owner accepts electronic bid bonds
Frequently asked questions
How much is a bid bond?
The obligee sets the bid security amount, often a percentage of the bid. Many sureties issue bid bonds for established accounts without a separate charge, but practices vary.
What if I win and cannot get final bonds?
The owner can claim on the bid bond, typically for the difference between your bid and the next acceptable bid, up to the bond amount.
Can I get a bid bond without a surety relationship?
Usually you need to be underwritten first, because the surety is committing to provide final bonds.
More bond guides
- Performance bonds for contractors
- Payment bonds
- Bid bonds
- Maintenance bonds
- Supply bonds
- Contractor license and permit bonds
- How to get bonded as a contractor
- Bonding capacity explained
- What determines performance bond cost
- Public works bond laws: the Miller Act and state statutes
- Surety prequalification checklist for contractors
Last updated October 15, 2026 · How we research