Bid Bonds
A bid bond guarantees that the lowest bidder on a construction project will enter the contract in good faith and perform the work at the agreed-upon bid.
Required for most public works projects (city, county, state, and federal), this surety bond protects taxpayer funds and the project owner by covering financial losses if the bidder defaults and the project must be re-bid.
Cost of a Bid Bond
Bid bonds are issued to the contractor at no cost. They serve as a financial guarantee during the bidding process, but no payment is required upfront.
If you’re awarded the contract, you will then need to get a performance bond to secure the contract. Performance bonds typically cost 1%-3% of the bid amount. The final cost will vary based on the project type, project size, and your financial profile.
How to Get a Bid Bond in Construction
The bid bond application process can be completed in a matter of minutes. Follow these steps:
- Apply for a line of bonding credit with NNA Surety. Many programs are available where you can get pre-approved with a simple credit check.
- Submit the RFP and bond documents to your agent for review to make sure no exclusions apply.
- Get your executed bid bond documents.
Start Bidding on Projects Today
Secure your construction projects with a no-cost bid bond from NNA Surety. Complete our form or call us to get bonded now.