InSource Insurance Group offers a wide variety of bid bonds that help protect your business in the construction bidding process.
A bid bond is a guarantee that a contractor who bids on your project follows through with the posting of a bond that assures the obligee that a contractor is financially sound and has the resources to complete the job bid. A bid bond is required for many large construction projects, and should be considered by the project owner to protect their interests.
InSource is experienced when it comes to understanding the many aspects of bid bonds, including the financial aspects and helping make sure the businesses involved in a construction project are protected.
of the bond amount is typically charged for bond premiums
According to the Insurance and Risk Management Institute (IRMI), a bid bond is used in conjunction with construction bidding processes. The bond acts as a guarantee that, if awarded the contract based on the bid submitted, the contractor will enter into a contract to perform the work at the price quoted.
A surety bond is a blanket term used for all bonds InSource can write for other businesses. Under the surety bond umbrella are:
If the contractor declines to enter into a contract to perform the work at the agreed-upon price, the bid bond will reimburse the obligee (owner or upper-tier contractor) the difference between the defaulting contractor’s bid and the next lowest bid, up to the penal sum of the bond.
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