Bid Bond

A bid bond is a type of surety bond that guarantees a contractor will stand behind its bid — entering into the contract and providing the required performance bonds if it is awarded the project. It protects the owner during the bidding process.

If a winning bidder backs out or fails to sign, the bid bond compensates the owner for the difference, often the gap between the low bid and the next-lowest. Bid bonds are standard on public and larger private projects.

Because a bid bond commits a contractor to the price they submitted, the accuracy of the estimate behind that bid carries real weight — there is no walking away cheaply from a number that turns out to be wrong. Getting the takeoff and estimate right before bidding is where Quotr helps.

For owners, a bid bond screens out unserious bidders and protects the schedule. For contractors, it is a routine cost of bidding that also raises the stakes on estimating accurately.