In U.S. construction, especially Texas public work, you rarely get past the bid stage without a bid bond. Bid Bonds tell project owners that you can perform, that a surety has prequalified your business, and that you’re prepared to provide performance and payment bonds when the contract is awarded.
We issue bid bonds quickly and accurately through our carrier partners so that you can submit your proposal on time with full confidence.
A bid bond is a surety instrument submitted alongside your bid that guarantees two things:
If the contractor declines to proceed after winning, or cannot provide the required bonds, the bid bond compensates the project owner for the cost of rebidding or awarding to the next qualified bidder, up to the full bond penalty amount.
For contractors with an established bonding program, we issue bonds at no additional cost; the surety earns its premium when the performance and payment bonds are issued after contract award.
The project owner sets the bond amount (not the contractor’s out-of-pocket cost), usually 5% to 10% of the total bid price.
Texas Example: A contractor bids $15,000,000 on a TxDOT highway project in Fort Bend County. The owner requires a 5% bid bond, a $750,000 bond amount. If the contractor has an active bonding program, we issue the bond at no additional charge.
AIA Document A310 is the American Institute of Architects’ standard bid bond form, the most widely used in the U.S. Most public agencies and many private owners specify A310 or accept it in place of their own form. We issue bonds on the AIA A310, EJCDC, and on owner-specified custom forms
A bid bond claim is triggered when a contractor who wins the bid refuses to sign the contract or cannot provide the required performance and payment bonds. The surety compensates the owner for the difference between the winning bid and the next lowest qualified bid, up to the bond penalty amount.
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A bid bond guarantees that a contractor who wins a bid will sign the contract and provide the required performance and payment bonds. It protects the project owner if the winning bidder walks away or cannot deliver.
For contractors with an established surety program, we usually issue bid bonds at no additional cost. The bond amount, usually 5%–10% of the bid price, is set by the owner.
AIA Document A310 is the standard bid bond form used on most U.S. construction projects. We issue on the A310 and on owner-required custom forms.
For established clients, same-day issuance is standard. New clients should allow 24–72 hours for initial prequalification.
The surety may compensate the owner for the difference between your bid and the next qualified bid, up to the bid bond penalty. Confirm your bonding capacity before bidding.
No. Issuing a bid bond does not guarantee performance and payment bonds at the same limit—each requires a separate underwriting evaluation.
