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| Originally Posted by Bond Magician How do I bid certified check? Is this better than having a bid bond? In what instances would I have to bid certified check? |
To bid by certified check means that you provide the Obligee (owner) with a certified check equal to the percentage they are requiring for bids. For example, if you are bidding a job at $100,000, and bid by certified check, you would need to provide a check for $10,000 to go along with the bid proposal.
The advantage to having a bid bond instead of a check is that you are not putting out any cash. Plus, the bond tells both you and the Obligee that if you are awarded the job, you will be able to get the Performance & Payment bond.
That being said, if you are short on time with a last minute bid, the cashier's check lets you submit a bid when there is no time to get a bond.