Capped Bids

[Redbull]

Why are all of my bid bonds capped? What does this mean?

[marietta68]

Originally Posted by Redbull

Why are all of my bid bonds capped? What does this mean?

What do you mean by "capped"? Does the bond amount state, "not to exceed XXX dollars"?

If that's what you're talking about, it simply means that the bond was approved based on the estimated contract price you provided to your agent. The company underwriter has granted authority for your submission of a proposal in that amount. If you discovered an error in calculation - for any reason - the bond's percentage amount may not cover your revised bid. In that case, you'll need a revised bid bond, and thus the underwriter will be notified that the estimated contract price has changed and has an opportunity to update his records and grant authority for the revision.