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Bid Bonds

What is a Bid Bond?

Bid bonds are very common in the commercial construction industry and function as a safety net for project owners and developers that the contractors that bid on the project will follow through with signing the contract as expected. 

Bid bonds assures the developer or project owner that the contractor they select will honor their bid. If the contractor does not honor their bid, the bid bond will compensate the project owner for having to select the higher bid. 

Bid bonds are legal agreements between 3 parties:
  • Obligee (Project Owner or Real Estate Developer)
  • Principal (Proposed Contractor)
  • Surety (The Company Issuing the bond)

The Principal (contractor that is submitting a bid) will acquire a Bid Bond from the Surety. The Principal will submit their bid and Bid Bond to the Obligee in hopes of winning the bid. The Surety financially guarantees that, if the Principal wins the bid, they will follow through on honoring their bid. If the Principal does not follow through, then the Surety will pay up to the bond amount to the Obligee and the Obligee can use those funds to hire another contractor for the project.

​Click below to go to our innovative bond portal. You can quote, bind, and issue a bond in less than 5 minutes! Note that some types of bonds and higher bond amounts aren't eligible for online instant issue and will require additional underwriting.
Get Your Bid Bond Approved Today

What does a Bid Bond Cost?

Believe it or not, Bid Bonds are actually free of charge. If you win a bid, then you would have to pay for a performance bond. A Performance Bond will replace the bid bond once your bid is accepted. The Bid Bond assures that you meet the obligations of your bid bond while a Performance Bond ensures you will perform the project according to the terms and conditions of your contract. 

​Click below to go to our innovative bond portal. You can quote, bind, and issue a bond in less than 5 minutes! Note that some types of bonds and higher bond amounts aren't eligible for online instant issue and will require additional underwriting.
Get Your Bid Bond Approved Today

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Roberts Insurance Group
64 Academy St
Canton, GA 30114​
(678) 250-8133
Alex@RobertsInsGroup.com

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Canton town square photo by Akhenaton06 | CC-BY-SA-3.0 | Website by InsuranceSplash
  • Personal Insurance
    • Vehicles >
      • Auto Insurance
      • SxS/RZR Insurance
    • Property >
      • Home Insurance
      • Landlords Insurance
    • Other >
      • Boat Insurance
      • Wedding Event Insurance
      • Umbrella Insurance
  • Business Insurance
    • Coverage Types >
      • Apartment Owners Insurance
      • Bonds
      • Business Auto - Commercial Auto Insurance
      • Business Liability Insurance - General Liability
      • Business Owners Package (BOP) Insurance
      • Builder's Risk Insurance
      • Commercial Property Insurance Georgia - Commercial Real Estate Insurance Canton GA
      • Commercial Umbrella - Excess Liability Insurance
      • Cyber Liability - Data Breach Insurance
      • Employment Practices Liability Insurance (EPLI)
      • Liquor Liability Insurance
      • Pollution Liability Insurance
      • Professional Liability Insurance
      • Trucking & Transportation Insurance
      • Vacant Building Insurance
      • Workers Compensation
    • Industry Specialties >
      • Auto Body Shop Insurance
      • Auto Dealers Insurance
      • Auto Mechanics Insurance
      • Car Wash Insurance
      • Contractors Insurance
      • Convenience Store - Gas Station Insurance
      • Day Care Insurance
      • Dump Truck Insurance
      • Electricians Insurance
      • HVAC Contractor Insurance
      • Janitorial Insurance
      • Landscaper Insurance
      • Manufacturers Insurance
      • Non Profit Organization Insurance - Religious Organizations - Charities
      • Plumber Insurance
      • Restaurant Insurance - Bar
      • Roofing Contractor Insurance
      • Trucking - Transportation - Cargo Insurance
      • Towing Insurance - Tow Truck
  • Work Comp Cost Control
  • Pricing
  • Blog
  • Contact
    • About
    • Staff Directory
    • Client Testimonials
    • Accessibility Statement