Certified Check vs. Bid Bond

[h2o]

Is there any benefits to submitting a Bid Bond instead a certified check when bidding on a contract?

[Surety Queen]

Originally Posted by h2o

Is there any benefits to submitting a Bid Bond instead a certified check when bidding on a contract?

Sure - by submitting a bond you don't have to put up the cash. Obligees can hold that certified check for a long time before returning it to you when the job is awarded. Also, the bid bond assures you and the Obligee that if you are low bidder, the Surety will write the final bond for you.

[h2o]

Does the cost of the bid bond depend on the contract amount?

[Surety Queen]

Originally Posted by h2o

Does the cost of the bid bond depend on the contract amount?

Nope - usually there is just a small fee for issuing a bid bond. The final bond (performance & payment) have a premium and you need to be sure to include that premium in your bid amount.

[Bond Magician]

Originally Posted by Surety Queen

Nope - usually there is just a small fee for issuing a bid bond. The final bond (performance & payment) have a premium and you need to be sure to include that premium in your bid amount.

Do I pay per bid, or is there something I can pay for that will cover an unlimited amount of bids for a year?

[Surety Queen]

Originally Posted by Bond Magician

Do I pay per bid, or is there something I can pay for that will cover an unlimited amount of bids for a year?

Each agency will have their own way of handling bids. We have a program that will allow for unlimited bid bonds during the year. If you are interested, talk to your bond representative for the details.

[h2o]

I usually hear about jobs at the last minute and would need bid bonds pretty quickly. Is there a way to get set up with your company ahead of time, so when one is needed it speeds up the process?

[Bond Magician]

Originally Posted by h2o

I usually hear about jobs at the last minute and would need bid bonds pretty quickly. Is there a way to get set up with your company ahead of time, so when one is needed it speeds up the process?

You can always apply even if you do not have any upcoming bids - you can apply to get pre-qualified. This way, if you are approved, you will save time when you want to bid on an upcoming job.

[h2o]

Originally Posted by Bond Magician

You can always apply even if you do not have any upcoming bids - you can apply to get pre-qualified. This way, if you are approved, you will save time when you want to bid on an upcoming job.

Once I'm prequalified... what is the typical turnaround time for bid bonds?