Bid bonds are a fact of life for contractors. Basically all public sector projects require contractors to have this type of surety bond before they’re allowed to submit a bid for work, and many private sector projects have the same requirement. Bid bonds hold a contractor financially responsible if they’re awarded a work contract but don’t accept the job. Developers and project owners use bid bonds as a way to discourage contractors from submitting bids they can’t or won’t fulfill, wasting valuable time and resources in the process.
Everything Contractors Need to Know About Bid Bonds in 2020
