Nearly all public sectors and many private ones require that a bid bond or cashier’s check accompany a contractor’s bid proposal at the time it is submitted. A bid bond guarantees that the contractor will provide the required performance and payment bond if the contractor is the low bidder and is awarded the contract.

Bid bonds are usually in the amount of 5% or 10% of the contractor’s bid amount and are subject to full or partial forfeiture if the contractor is low bidder and does not execute the contract and provide the required performance and/or payment bond.

Because the bid bond guarantees that a performance and payment bond will be issued, the surety underwrites a bid bond request as though they were being asked to issue the performance and payment bond. Contrary to what many contractors believe, we cannot get approval for a bid bond without the proper underwriting information.

10320 Orland Parkway, Orland Park, IL 60467

(708) 390-2300 or (888) BONDREP

Fax: (708) 390-2301