Bid Bond Guide for Contractors
A bid bond guarantees that if you win the bid, you will (a) enter into the contract and (b) obtain the required performance bond. If you walk away, the surety pays the difference between your bid and the next lowest bid.
How bid bonds work
Most public-works projects require bid bonds of 5%–10% of the bid amount. If your $1M bid wins and you bail, the surety pays the project owner the difference between your bid and the next lowest bid, up to the bond amount.
What they cost
Most established sureties offer bid bonds for FREE if you commit to using them for the performance bond. CNA Surety and Old Republic both follow this practice. Some sureties charge a $50–$200 flat fee for the bid bond itself.
How to get one
If you already have a bonding line with a surety, your agent can issue a bid bond in 1–2 hours. If you don't have a bonding line yet, expect a full underwriting application — personal financial statement, business financials, and bonding capacity request — that takes 1–3 days.
Get a bid bond from Noah
We write bid bonds same-day for contractors with an existing bonding line, and we set up new bonding lines within 3–5 business days. 814-718-0060.
Ready for a same-day quote?
Real broker. Real numbers. Same business day on most Ohio policies.