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Contractor glossary

Bid Bond: Definition for Contractors

A surety bond that guarantees a contractor will honor their bid and enter the contract if selected, common on public and larger projects.

What is bid bond?

Bid Bond. A surety bond that guarantees a contractor will honor their bid and enter the contract if selected, common on public and larger projects.

Why it matters to your pricing

Bonding requirements add cost and qualification steps. Read the bid spec for them and price the bonding as a real cost.

This is a general educational definition, not financial or legal advice. Confirm anything regulated with your accountant or state board.
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