Bid Bonds
Overview
A bid bond guarantees that the lowest bidder on a project will enter the contract in good faith and perform the work at the agreed-upon bid.
Required for most public works projects (city, county, state, and federal), this surety bond protects taxpayer funds and the project owner by covering financial losses if the bidder defaults and the project must be re-bid.
How to Get a Bid Bond
You can get a bid bond often in a matter of minutes by following these three steps:
- Apply for a line of bonding credit with NNA Surety. Many programs are available where you can get pre-approved with just a simple credit check.
- Submit the RFP and bond documents to your agent for review to make sure no exclusions apply.
- Get your executed bid bond documents.
Cost of a Bid Bond
Bid bond documents are issued at no cost to the contractor.
If awarded the contract, you will need to get a performance bond that typically costs 1%-3% of the bid amount. The pricing of the final performance and payment bonds will vary based on a combination of the project type, size, and financial profile of the principal.
NNA Surety Can Help You
Secure those bid proposals with a bid bond from NNA Surety. Complete our form or call us to get bonded today.