Click to verify BBB accreditation and to see a BBB report.
Follow us on twitter!
+ Reply to Thread
Results 1 to 2 of 2
  1. Harley
    Harley is offline Member
    Join Date
    Oct 2006
    Posts
    59

    Purpose of Bid Bond

    What is the purpose of a bid bond? and how does it work?
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
    Reply With Quote Reply With Quote  
  2. marietta68
    marietta68 is offline Surety Professional
    Join Date
    Jul 2007
    Posts
    112

    Quote Originally Posted by Harley
    What is the purpose of a bid bond? and how does it work?
    The bid bond demonstrates to the owner that you've been prequalified to do the work proposed - in terms of your experience and your finances. The bond amount is generally a percentage of your contract estimate. That amount is calculated to provide payment for damages to the owner if you fail to enter into the contract at the price submitted. The owner would then award the job to the second lowest, or qualified, bidder, taking the value of your bid bond to hopefully fully cover the difference.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
    Reply With Quote Reply With Quote  
« Previous Thread | Next Thread »

Similar Threads

  1. What is the purpose?
    By Numbers in forum Fidelity Bonds
    Replies: 1
    Last Post: 12-10-2007, 01:02 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Forum Rules


Content Relevant URLs by vBSEO 3.5.0 RC1 PL1