What is a Bid Bond Why are more owners and developers requiring a bid bond? A bid bond is a type of surety bond, which guarantees Why that the bidder will accept the project and complete it according to its terms. do The simple answer is risk. Given the...
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What is a Bid Bond Why are more owners and developers requiring a bid bond? A bid bond is a type of surety bond, which guarantees Why that the bidder will accept the project and complete it according to its terms. do The simple answer is risk. Given the uncertainty of the marketplace, which you includes long-time contractors closing It provides assurance to the project owner that the bidder has the expertise to finish the job once they are need their doors, to municipalities filing bankruptcy (or just slow paying), has led awarded. one ? to the owners being afraid that their contractors will be unable to complete The Bid Bond prequalifies the principal and provides the work. So, they require protection. the necessary security to the owner, or “obligee,” guaranteeing that the principal will enter into the contract, if one wins the bid. How it is issued It is issued as part of a bid by a Most contain a cash deposit, The bid bond assures that if surety bond company to the which is subje
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