Construction Bid Bond Form
Description
How to fill out Contractor's Summary Of An Estimate?
When you need to file a Construction Bid Bond Form that adheres to your local state's statutes, there may be numerous options to choose from.
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FAQ
Premiums for construction bonds are calculated as a percentage of the bond value, and usually quoted in dollars per thousand: Bond Amount X Rate/1,000. Percentages are typically tiered given the size of the bond and average in the . 7 2.5% range but can go as high as 3% or more, depending on a variety of factors.
A bid bond typically involves three parties: the obligee, the principal, and the surety. The obligee is the owner or developer of the construction project under bid. The principal is the bidder or proposed contractor. The surety is the agency that issues the bid bond to the principal.
The function of the bid bond is to provide a guarantee to the project owner that the bidder will complete the work if selected. The existence of a bid bond gives the owner assurance that the bidder has the financial means to accept the job for the price quoted in the bid.
You'll likely need to get a bid surety bond that's a specific percentage of the total estimated contract amount (most commonly about 5-10% of the total contract cost). This means if the project you're bidding on is estimated to cost $500,000 and you're required to get a 10% bid bond, you need to get a $50,000 bid bond.
The bids are very different, but keep in mind the labor-only bid does not include the cost of materials, which you'd still need to account for separately.
