Bid Bonds

InSource Insurance Group offers a wide variety of surety bonds that will help protect your business against other companies taking advantage of a project you are seeking bids for.

We will work with you to understand what you need in a bid bond and draw up a bond that will cover any broken bids from contractors. Oil and manufacturing industries require bid bonds to ensure bids are in line with what a contractor can produce for your project. This guarantee will help you continue your project without any surprises.

What is a Bid Bond?

A bid bond is a guarantee that any contractor who is bidding on your project will follow through when you decide to partner with their business. This bond protects you against a contractor that doesn’t follow through, isn’t financially stable, or doesn’t have the necessary resources to complete the job. A bid bond is a necessity for any Federal project and required in some areas. Even if your project isn’t Federal or required by law, it is still extremely important to any project with a bidding structure.

A surety bond is a blanket term used for all bonds InSource can write for other businesses.

Bid Bond vs Surety Bond

A surety bond is a blanket term used for all bonds InSource can write for other businesses. Under the surety bond umbrella are:

  • Bid bonds
  • Judicial bonds
  • License & permit bonds
  • Oil & gas bonds
  • Payment bonds
  • Plugging bonds
  • Contract bonds
  • Warranty bonds

 

Bid Bond Penalties

If the company you’ve decided to hire for your project is unable to perform the job, there is a penalty. The monetary value of penalties are dependent on the contract price but range anywhere from 10% to 20% of the project cost, or a set penalty fee, will be awarded to you.

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