AmeriPro Surety Bonds | 844-589-9732 | Bid Surety Bonds
What is a Bid bond?
A bid bond is a type of contract bond which guarantees that the winner of a bid on a project (i.e. road construction, a dam, a highway, etc.) will fully comply with the contract under the terms under which the bid was made should the bidder (the purchaser of the contract) win the contract. (from Wikipedia).
Without a bid surety bond, creators of projects would essentially have no way of knowing whether or not those who present themselves as capable of completing the project actually have the ability and intention to do so.
Individuals who bid on a contract with a surety bond and are awarded the contract but fail to comply with the terms of the contract may be subject to having a claim filed on their surety bond.
The Miller Act requires Bid Bonds for certain projects:
The Miller Act was enacted in 1935 and remains very much in force today. This Congressional legislation requires that surety bonds for federal projects which exceed a certain dollar amount are required to be backed by a surety bond.
The surety bond also guarantees that both the performance of the job in question and that all subcontractors will be properly paid for their work.
In addition to federal law, there are also state laws as it relates to the federal Act. These are known as The Little Matter Act Statutes.
Qualifying for a Bid Bond can be very easy….
AmeriPro Surety Bonds will work with you to obtain your bid bond.
As there are many different types of bid bonds, we will of course speak with you and work with you to have all the relevant documentation needed to have your bond issued.
Depending on the project and its dollar value, it’s quite possible that the bid bond will require no financials (documentation) at all!
Also, if you are awarded the project, we will also help you to quickly obtain any additional bonds which will be required.
3-Sides to a Bid Surety Bond…
For bid surety bonds, the principal is the purchaser of the bid bond.
The obligee is the city, state, locality, federal government, or any entity which requires the principal to purchase the bid bond. Again, the obligee wants to be assured that any bidders for a contract can actually fulfill the terms of the contract.
The surety is the issuing entity for the bid bond.
In short, a principal purchases the bid bond from the surety to ensure that should they be awarded the contract they will complete the job as promised and as required by the obligee.
About AmeriPro Surety Bonds
AmeriPro Surety Bonds provides bid and contract bonds for all 50 states.
We focus exclusively on two things: You, our client. And surety bonds of all types.
Call us today at 844-589-9732.