Bid Bond Information

Bid Bond Guide

Obtaining a bid bond is the first step in the contract bond process.  Using our streamlined processes, responsive service and dedicated bond professionals we provide quick and clear responses to your requests.   Our stable, lasting relationships with our surety company partners are built on trust and experience.  The strength of these relationships sets us apart.

 

Most approvals are provided within 24 hours, many on the same day you request the bond!  

 

Below you will find basic terms relating to Bid Bonds

Parties to the Bid Bond

 

A surety bond is a three party instrument

 

  • The Principal (This is you) - The person or business with an obligation to perform.

  • The Obligee - The person, company or governmental entity requiring the bond.

  • The Surety - The insurance company providing the bond

Purpose of the Bid Bond

 

  • The bid bond assures the Obligee that the bid has been submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.

 

Term of the Bid Bond

 

  • Typically the bid bond remains in effect for a specified period or until the bid is formally awarded to winning contractor.  

Have a question? Need a bond?  

Verify your Bid Bond - Fraudulent bonds are prevalent!  Make sure you are buying a real bond.

 

  • Several resources are available to ensure your bond is from a legitimate source.  You may contact your state's insurance department to verify that the surety is a legitimate company, licensed to issue surety bonds in that state; you may review the U.S. Department Circular 570 (for federal projects); and you also may verify the strength of the surety company through a private company such as A.M. Best, which issues financial strength ratings that measure the company's ability to pay claims.  You should undertake these steps to verify your bond protection early, preferably before signing the contract or paying for the bond. 

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All bonds written through the Charles L. Crane Agency - Est. 1885