Iowa Bid Bond
If you plan to bid on public or private construction projects in Iowa, prepare to get a specialized type of surety bond known as an Iowa bid bond. Read on for all the details.
What is an Iowa Bid Bond?
If you submit a winning bid and then pull out of the project before it starts, an Iowa bid bond will compensate the project owner who issued the call for bids.
Who Needs a Bid Bond in Iowa?
A call for bids will stipulate whether Iowa bid bonds are necessary. When Iowa bid bond requirements exist, someone must prove they have a compliant bid before their bid is accepted. Since bids are contingent on bonds, and winning work is contingent on bids, seek out a bid bond as soon as you're aware you need one. If you have any doubts, contact Viking Bond Service for assistance.
Who are the parties involved in an Iowa Bid Bond?
You are one of three parties entering into the surety bond agreement.
- Principal - This is the contractor or construction company required to get the bid bond. The principal is also responsible for paying either the obligee or the surety for any claims filed against the bond.
- Obligee - This is the project owner who files a claim against the bond. They have the right to seek a settlement anytime the principal pulls out of a bid.
- Surety - This is the agency that issues and backs the bond. The surety guarantees payment to the obligee for all valid claims, but the surety does not accept financial liability. The principal must repay the surety for any settlements paid out.
How Much Does a Bid Bond Cost in Iowa?
In most cases, Iowa bid bonds don't have a direct cost. That's because the surety agency that issues you the bid bond will also issue you a performance or contract bond, which ensures you will perform work up to the standards set in the contract. In the rare case that you do need to pay for the bid bond, expect a minimal cost. And if you're worried that bad credit could make it hard to get an affordable bond, take advantage of a special program offered by Viking Bond Service to help more people get bonds regardless of credit.
How does an Iowa Bid Bond Work?
When a bonded contractor abandons a bid, the project owner will file a claim for compensation with the bond. Provided that the details of the claim are all true, the surety automatically issues payment. The final step is for the bonded contractor to pay the surety back with interest and fees included.
How to get a Bid Bond in Iowa?
It's quick and easy to get bid bonds in Iowa. You will complete a bond application, submit to a credit check, supply a copy of the bond requirements, and you're set. Get a quote back in as little as 24 hours by applying with Viking Bond Service
Why you should get your Iowa Bid Bond from Viking Bond Service
We have one goal above all: to make bonding easy. We work with contractors throughout Iowa. And the reason we've become a preferred surety bond provider is because we take the stress out of obtaining a bond. Bonds may be required, but a bad experience isn't. We prove that at Viking Bond Service.
Get a Free Quote for an Iowa Bid Bond today!
How much will an Iowa bid bond cost you. Get a free quote within 24 hours by contacting us first at the link or at 1-888-278-7389.
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