Bid bond

Bid bond

A Bid Bond is issued by the Surety to the owner of the project in lieu of a required cash deposit. The cash deposit (usually 10% of the bid amount) is subject to full or partial forfeiture if the contractor is the low bidder and fails to either execute the contract or provide the required Performance and/or Payment Bonds. In other words, the bid bond assures and guarantees that should the bidder offer the low bid, the bidder will execute the contract and provide the required surety bonds.


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  • bid bond — see bond 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. bid bond …   Law dictionary

  • bid bond — loc.s.m.inv. ES ingl. {{wmetafile0}} TS banc., econ. garanzia bancaria relativa alla fornitura di un appalto internazionale o di una merce da esportare {{line}} {{/line}} DATA: sec. XX. ETIMO: comp. di bid offerta e bond titolo a garanzia …   Dizionario italiano

  • bid bond — /ˈbidbond, ingl. ˈbɪdˌbHnd/ [lett. bid «offerta, cauzione» e bond «titolo a garanzia»] loc. sost. m. inv. (econ.) garanzia di offerta …   Sinonimi e Contrari. Terza edizione

  • bid bond — A bid performance bond consisting of a small percentage (1 3%) of the tender contract price, refunded to losers once the contract is awarded. Bloomberg Financial Dictionary * * * bid bond bid bond ➔ bond * * * bid bond UK US noun [C] ► …   Financial and business terms

  • Bid Bond — A debt secured by a bidder for a construction job or similar type of bid based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected. The existence of a bid bond provides… …   Investment dictionary

  • Bid Bond — Eine Bietungsgarantie, auch Ausschreibungsgarantie (englisch: Bid Bond) ist ein Aval, das bei der Beteiligung an einer Ausschreibung gestellt werden muss, um die Solvenz des Bieters zu bestätigen und sicherzustellen, dass der potenzielle… …   Deutsch Wikipedia

  • bid bond — A bond required of one who bids in the letting of a contract for the construction of a public improvement, the purpose of the bond being to indemnify the public body against loss resulting from the withdrawal of the bid or the refusal of the… …   Ballentine's law dictionary

  • bid bond — noun : a surety bond often required of contractors bidding on construction work to provide that the bidder, if successful, shall furnish a satisfactory bond ensuring completion of the work called also proposal bond …   Useful english dictionary

  • Bid Bond — ⇡ Bietungsgarantie …   Lexikon der Economics

  • bid — 1 / bid/ vb bid, bid·ding vt: to offer (a price) for payment or acceptance vi: to make a bid: state what one will pay or take in payment a contractor bidding for a job bid·der n bid 2 …   Law dictionary

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