Bid Bond vs. Certified Check

[Redbull]

What is the difference between obtaining a bid bond for a bid or bidding certified check? Which is a better option?

[Phillies]

What is the difference between obtaining a bid bond for a bid or bidding certified check? Which is a better option?

By obtaining a bid bond you and the Obligee are assured that if you are awarded the project, you will be able to get a performance and payment bond. While the certified check is a good option if there is no time to obtain a bond, you will be without those funds until the Obligee awards the contract.

Getting a bid bond is definitely the preferred way to bid a project, but the certified check is an option if needed.

[chefman]

What happens to my funds after the bid is awarded to me (low bidder)? Is it held until I secure a performance bond or returned to me?

[Phillies]

What happens to my funds after the bid is awarded to me (low bidder)? Is it held until I secure a performance bond or returned to me?

In most instances I believe it is returned to you when you provide the performance bond. If you are not the low bidder, then the deposit should be returned to you when the job is awarded.