What is a Bid Bond?
A Bid Bond guarantees that if a principal is the successful bidder, the principal will enter into a contract and file a performance or supply bond. The bid bond also guarantees the bidder has the experience and financial ability to complete a job if it is awarded. If the principal cannot complete the job, the surety carrier will back the job.
How does a Bid Bond Work?
When the successful bidder is awarded the bid, the bid bond will turn into a Performance Bond which will make sure the awarded work gets completed, accordingly to the terms of the bid specifications. If the contractor fails to complete the work, the owner of the job may file a claim against the contractor for completion of the work or reimbursement from the surety carrier.
How much does a Bid Bond Cost?
Typically, there is not a charge for a bid bond. If there is a charge, it is usually a small fee. A surety broker will review the submission and will give you an idea of the cost of the entire package including the rate for a Performance Bond within a timely manner. At Universal Service Agency, we strive to find out clients the best rates with the strongest rated carriers to insure you are getting the best bond coverage available.
How do I get a Bid bond?
Bid bonds can be acquired by contacting surety bond agents/brokers. Since you’re already here, you can give us a call at 215-646-2400 or Apply Now here.
How to Choose a Bonding Company?
Universal Service Agency offers Surety Service Made Simple. We are the fastest surety only agency in the country, with over 100 years of combined surety experience servicing all 50 states. We exhaust all of our resources to get you the fastest turnaround times and lowest rates. We can help anyone, even clients that may not fit into the standard market. You can get a free quote here or call our bond experts at 215-646-2400.
How long does it take to get a Bid bond?
Universal can issue bonds the same day an application is received. The amount of time between application and issuance is affected by a number of factors though, including but not limited to, the size of the obligation, the type of bond, and promptness of the premium payment.
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Universal Service Agency is the fastest “surety only” agency in the country, with over 100 years of combined surety experience servicing all 50 states.