Jun 11, 2025 · Bid bonds are backed by specialized surety companies that guarantee the payments will be made if the contractor fails to uphold their end of the bargain. The other main …

Learn the difference between bid bonds and performance bonds, how each works, and when contractors need them. Clear examples and expert insights in this 2025 guide.

Bid bond vs performance bond: Learn the key differences, their purposes, and why they are essential for successful construction projects.

Whether you’re a recently licensed insurance agent or a seasoned veteran of the industry, surety bonds, and particularly bid bonds and performance and payment bonds can be confusing.

Guide to What is Bid Bond & its definition. We explain the meaning of a bid bond as a guarantee, and how it differs from a performance bond.

Sep 7, 2023 · Understanding a bid bond vs. a performance bond is essential because it helps you know what is insured through it. If you’re unsure what each guarantees, read on to learn more. …

Jun 11, 2025 · Bid bonds, performance bonds, and payment bonds are common contractor bonds that get mixed up. Check out this guide to understand the difference between each of these …

Discover the essential differences between bid bonds and performance bonds in construction, ensuring your projects are secure and successful.

Jan 29, 2024 · This comprehensive guide clarifies the distinct purposes, requirements, and costs of bid bonds versus performance bonds for municipal projects, helping contractors navigate …

A bid bond only covers the bid itself, ensuring that the contractor selected can follow through on the project while a performance bond only becomes necessary once a bid is won and a …