Bid bond
A bid bond is a surety company's promise that a bidder will sign the contract at the price it bid.
If the winning bidder walks away, the surety pays the agency, usually the difference to the next bidder up to the bond amount.
On a real bid
Public construction bids often ask for a bid bond of 5 to 10 percent of the bid on state and local work, and federal construction typically asks for 20 percent. Many small jobs and most service contracts ask for none.
You get a bid bond through a surety, usually by way of an insurance agent. A contractor who wins then usually needs a performance bond and a payment bond as well.
The longer read: What is a bid bond? What it costs and how to get one
Where Capveon reads it
Capveon finds the bond requirement in every bid package and puts it in a column, so you know before you download whether you can bid.
