Bid Bonds provide assurance to project owners that a contractor’s bid is serious and financially backed by a surety. They help prevent contractors from submitting low bids only to withdraw later, causing delays and financial issues for the project owner. Many public works and private construction projects require bid bonds as part of the bidding process to ensure only qualified and committed contractors participate. If the contractor fails to proceed with the contract after winning the bid, the surety may be liable for the penalty stated in the bid bond, typically 5% or 10% of the bid amount.
Bid Bonds vs. Cashier’s Checks – Keeping Your Cash Flow Intact
Without a bid bond, contractors bidding on projects often need to provide a cashier’s check or money order as security—tying up thousands or even hundreds of thousands of dollars in cash. A bid bond eliminates this burden on cash flow, allowing contractors to bid on multiple projects without having their money locked up. This is especially important for contractors who need working capital for payroll, materials, and ongoing projects.
At JRG Surety, we provide Bid Bonds at NO COST to contractors, unlike some brokers who charge fees. As a surety broker, we work with multiple surety companies to get contractors approved quickly, ensuring they can bid on projects without delays. Our fast and hassle-free process helps contractors secure Bid Bonds in 24 hours or less, so they can focus on winning projects and growing their business.
Need a Bid Bond? Apply with JRG Surety Today – Fast, Easy, and Free!
Please reach us at suretybondsupport@jrgsurety.com if you cannot find an answer to your question.
A Bid Bond is a three-party agreement between:
✅ The Contractor (Principal) – The party submitting the bid and seeking the bond.
✅ The Surety – The company guaranteeing that the contractor will honor their bid.
✅ The Obligee – The project owner or general contractor requiring the bid bond.
If the contractor is awarded the contract but fails to proceed, the surety may be responsible for the penalty stated in the bid bond (typically 5% or 10% of the bid amount) This system protects project owners and ensures only serious, qualified contractors submit bids.
At JRG Surety, most contractors can get a Bid Bond issued within 24 hours, depending on the project size and underwriting requirements. If a contractor already has an approved bonding program, bid bonds can often be issued the same day.
No! Unlike some brokers who charge fees for bid bonds, JRG Surety provides Bid Bonds at NO COST to contractors. Our goal is to help contractors compete for projects without extra expenses, ensuring they can focus on growing their business.
Need a Bid Bond? Apply with JRG Surety Today – Fast, Easy, and Free!
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