Bid Bonds
Project developers have contractors file bid bonds to guarantee they
provide serious bids and are financially stable enough to complete the
project. A bid bond is a guarantee that a contractor provides to a project owner during the bidding process showing that they have the capability to take on and implement the project if they are selected.
Under the Miller Act, all bidders are required to submit bid bonds on any federal project, and many private firms have also converted to this method in an effort to minimize risk. Project owners usually do not know if a contractor is financially stable or has the necessary resources required to take on a project, however a bid bond eliminates this uncertainty because the project owner can collect compensation from the surety bond.
Obtaining a surety bond is essential if a company wants to be competitive in the construction industry! Contact us today for your free, no obligation quote today!
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