{"id":1083,"date":"2020-10-29T21:31:14","date_gmt":"2020-10-29T21:31:14","guid":{"rendered":"https:\/\/www.performancesuretybonds.com\/blog\/?p=1083"},"modified":"2022-01-24T16:03:32","modified_gmt":"2022-01-24T16:03:32","slug":"everything-contractors-need-to-know-about-bid-bonds","status":"publish","type":"post","link":"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/","title":{"rendered":"Everything Contractors Need to Know About Bid Bonds in 2020"},"content":{"rendered":"\n<p>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\u2019re 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\u2019re awarded a work contract but don\u2019t accept the job. Developers and project owners use bid bonds as a way to discourage contractors from submitting bids they can\u2019t or won\u2019t fulfill, wasting valuable time and resources in the process.<\/p>\n\n\n\n<!--nextpage-->\n\n\n\n<p>Given the importance and prevalence of bid bonds, it\u2019s important for contractors to know how current events affect the bond industry. Circumstances outside a contractor&#8217;s control could make it harder or more expensive to obtain a bond \u2013 or do the opposite. What\u2019s the outlook for bid bonds in 2020 and beyond? We asked experts for their opinions. Here\u2019s what they had to say:<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">More Bid Bonds Available<\/h2>\n\n\n\n<p>The outlook is bright according to Dan Bailey, President of <a href=\"https:\/\/www.wikilawn.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">WikiLawn<\/a>. \u201cThe number of sureties in the game has been increasing, with a big jump in the last couple of years. I only expect that to continue, as the construction industry is still booming despite setbacks from COVID, especially in the arena of government contracts which necessitate bid bonds.\u201d<\/p>\n\n\n\n<p>With more options for bid bonds comes more competition for contractors. Once again, Bailey sees that as a good thing. \u201cI don&#8217;t believe the risks will change much, though in order to be competitive, bid bond companies may be more trusting than they have been previously. Most get a bit antsy when there&#8217;s more than a 10% difference between the highest and next highest bid, so that number may be upped in 2020 and beyond. It only makes sense, as more players enter the market.\u201d<\/p>\n\n\n\n<p>Bailey\u2019s optimism combined with the state of the industry suggests that now is an ideal time to obtain a bid bond.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">New Obstacles to Construction Starts<\/h2>\n\n\n\n<p>The construction industry has been deeply affected by the coronavirus, like most industries. Disruptions related to the pandemic could put a damper on construction starts, says Jess Silkoff, Co-Founder and President of <a href=\"https:\/\/myroofingpal.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">MyRoofingPay<\/a>. \u201cThere are several large issues with bid bonds in 2020 due to the current pandemic. One of the biggest issues comes from the fact that most construction material comes from China, and a delay, or inability to procure the materials could be detrimental to your project and timeline.<\/p>\n\n\n\n<p>Silkoff also worries that supply chain problems and public health concerns could further complicate construction planning into the foreseeable future. \u201cAnother major issue is a mass shortage of N95 respirators. Without the proper masks, some jobs can\u2019t be done, or put you at risk of an OSHA Violation.\u201d<\/p>\n\n\n\n<p>With so much legitimate uncertainty, in the present and on the horizon, contractors can\u2019t let bonding issues jeopardize their ability to win bids.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">New Bid Bond Clauses<\/h2>\n\n\n\n<p>Kim Chan, Founder of <a href=\"https:\/\/docpro.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">DocPro.com<\/a> highlights another coronavirus-related issue that could have effects for bid bonds. \u201cGenerally force majeure clause is not included in the bid bond, so it is important for bid bonds in 2020 to include such force majeure clause to enable the contractor to exit a situation when it is beyond its reasonable control.\u201d<\/p>\n\n\n\n<p>In this context, a force majeure clause allows a contractor to abandon a bid he has previously won if there are \u201cmajor forces\u201d outside of anyone\u2019s control. A global pandemic certainly qualifies. As Chan warns, contractors need to scrutinize their bond agreement closely for a force majeure clause, and look for surety bond providers willing to offer this protection against the unexpected.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Viking Bond Service \u2013 At the Forefront of Bid Bonds in 2020<\/h2>\n\n\n\n<p>According to people on the front lines of the bid bond industry, the outlook for 2020 is both positive and negative. More providers might start offering bonds and competing for business, but the coronavirus and its ongoing effects could mean contractors have less work and need fewer bonds.<\/p>\n\n\n\n<p>What\u2019s your outlook for 2020 and beyond? Do you expect work to pick up, slow down, or stay largely the same? What sorts of projects do you expect to bid on, and what will the bond requirements entail? These are the kinds of questions <em>all <\/em>contractors need to be asking right now as they navigate through these uncertain times.<\/p>\n\n\n\n<p>Make sure you have a great surety bond partner by your side through it all. When opportunities arise, bonding issues can\u2019t get in your way. That\u2019s where Viking Bond Service comes in \u2013 a nationwide surety&nbsp; brokerage licensed to work in all 50 states. Like the experts we highlighted above, we track the bid bond market closely and strive to be the bond company that contractors need in good times and bad. We understand the challenges contractors face right now, the opportunities on the horizon, and the importance of bid bonds through it all.<\/p>\n\n\n\n<p>For more information, contact our team of bond experts at 1-888-278-7389. You can also send us your questions through the contact form on this page. If you\u2019re ready to get a quote for a bid bond in as little as 24 hours, <a href=\"https:\/\/www.performancesuretybonds.com\/standardapp\/\" target=\"_blank\" rel=\"noreferrer noopener\">complete this application<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019re 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\u2019re awarded a work contract but &hellip; <a href=\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Everything Contractors Need to Know About Bid Bonds in 2020&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1085,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Everything Contractors Need to Know About Bid Bonds in 2020 | Viking Bond Service, Inc.<\/title>\n<meta name=\"description\" content=\"What\u2019s the outlook for bid bonds in 2020 and beyond? We asked experts for their opinions. Here\u2019s what they had to say:\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\" \/>\n<link rel=\"next\" href=\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Everything Contractors Need to Know About Bid Bonds in 2020 | Viking Bond Service, Inc.\" \/>\n<meta property=\"og:description\" content=\"What\u2019s the outlook for bid bonds in 2020 and beyond? We asked experts for their opinions. Here\u2019s what they had to say:\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\" \/>\n<meta property=\"og:site_name\" content=\"Surety Bond Blog | Discover Performance Bonds, Court Bonds &amp; More\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/vikingbondservice\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-29T21:31:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-24T16:03:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.performancesuretybonds.com\/blog\/wp-content\/uploads\/2020\/10\/bigstock-Bid-Bond-21539687.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Viking Bond Service\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Surety_Bond_\" \/>\n<meta name=\"twitter:site\" content=\"@Surety_Bond_\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Viking Bond Service\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\"},\"author\":{\"name\":\"Viking Bond Service\",\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/#\/schema\/person\/c539f0fcce9e0a0cb437086afd7c2ac2\"},\"headline\":\"Everything Contractors Need to Know About Bid Bonds in 2020\",\"datePublished\":\"2020-10-29T21:31:14+00:00\",\"dateModified\":\"2022-01-24T16:03:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\"},\"wordCount\":878,\"publisher\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.performancesuretybonds.com\/blog\/wp-content\/uploads\/2020\/10\/bigstock-Bid-Bond-21539687.jpg\",\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\",\"url\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/\",\"name\":\"Everything Contractors Need to Know About Bid Bonds in 2020 | Viking Bond Service, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.performancesuretybonds.com\/blog\/everything-contractors-need-to-know-about-bid-bonds\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.performancesuretybonds.com\/blog\/wp-content\/uploads\/2020\/10\/bigstock-Bid-Bond-21539687.jpg\",\"datePublished\":\"2020-10-29T21:31:14+00:00\",\"dateModified\":\"2022-01-24T16:03:32+00:00\",\"description\":\"What\u2019s the outlook for bid bonds in 2020 and beyond? 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