Requirements for Federal Construction: Bid Bonds
Apply for a Bid Bond
When a performance bond and/or payment bond is required for a contract, then a bid guarantee is needed. Typically this guarantee is in the form of a bid bond.
After an unsuccessful bid, the bonds are returned to the bidder. The winning bidder will only have their bid bond returned after all following bonds are executed according to their contracts.
If the contractor awarded the bid does not complete the project, or the finished product does not meet the quality specified in the contract, the government agency may terminate the contract and demand that the surety pay the difference of the winning bid, and the next lower bidder.
