Surety Bonds
What Is a Bid Bond for Contractors?
A bid bond accompanies your proposal on bonded projects. It guarantees that if you’re awarded the contract, you’ll execute it and provide the required performance and payment bonds.
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What is a bid bond and when is it required?
Bid bonds are required with bids on most public projects. They’re typically 5–10% of your bid amount. If you win the bid but refuse to execute the contract or can’t provide performance/payment bonds, the bid bond covers the owner’s cost of re-bidding.
Cost: free or minimal ($100–$200) with an established surety relationship. The surety issues the bid bond as part of their support commitment — they’re confirming they’ll back you with performance/payment bonds if you win.
Without a surety relationship, you can’t easily provide a bid bond — which effectively disqualifies you from public competitive bidding. Establishing a surety relationship before you need it is essential for contractors who want to pursue public work.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.