Construction Bid Bond (Tender Bonds)

As a contractor, you understand how difficult it can be to win a bid for a project development. Setting your bid low is always helpful, but you should also consider filing a tender bond. In fact, some project developers will actually make having bonds for contractors a requirement before placing a bid. Below, you will learn all about our bid bonds also known as tender bonds and why you will want to incorporate them into your upcoming project.


An Overview

Before you begin exploring the overall benefits of bid bonds, you should take the time to learn the basics. These surety bonds are basically a way to obtain financial security for contract bidding proposals. They’re frequently utilized for larger construction projects, especially commercial developments. By failing to file a contractors bond, the contractor’s bid will immediately be rejected and their time will be wasted. Therefore, all contractors need to become familiar with these bonds and use them each time they place a bid to get a Surety’s Consent or Agree to Bond!


Click here to Apply for your Bid Bonds aka Tender Bonds Now!

construction bid & tender bonds


Information You’ll Need

Before you file your bid surety bond and issue your bid, you should understand that this will automatically guarantee that your underwriter will agree to file a performance bond, if your bid is accepted. Also, there is a little bit of information that should be compiled together, before moving forward.

  • What is the quantity of your bid?
  • What is the date of your bid?
  • Do you have a history of being bonded?
  • What is the history of your company?
  • Your current, personal credit score

In many cases, you will also need to submit your financial credentials, when applying for your bid bond!


Frequently asked questions regarding bid bonds


Benefits as a Bidder with tender bonds

The construction and development world is a “dog-eat-dog” environment, because many development companies will diligently attempt to win a project bid under all circumstances. This is why bid bonds are so important for a winning bidder. This agreement or contract will protect the developer from having the project pulled out from under them, after they have won the bid.


Benefits as an Owner – Why your contractors should have bid bonds.

As an owner of a bid, you will definitely only want reliable developers or construction companies that can afford to finance the project. It would be a complete waste of the owner’s time to select a bidder that cannot fulfill the contract accordingly. The bond company or surety will guarantee that the bidding developer will be able to complete the project per the agreement.


Need To Withdraw Your Bid?

Some contractors will encounter a situation, which requires them to withdraw their bid. You can only withdraw your bid, without losing your bid security, if you do so before the developer opens your bid. There are some cases, when the developer will give you the option of retracting your bid, without repercussions. If you must retract your bid, it is highly recommended that you do so quickly!


File Your Bond for the upcoming bid now!

As a construction contractor, it is essential to recognize the importance and impact of a tender bond. Before you place your bid, you should proceed through our application process, so you can obtain your bid bond, increase your chances of winning the bid and protect your investment!


Other Types of Construction/Contract Bonds we provide: