Bid bonds
A bid bond guarantees that if you win the award, you will enter the contract at the price you bid and furnish the required performance and payment bonds. CapStream issues bid bonds as fast as 1 hour.
Requesting a bond does not affect your credit.
Bid bonds are free
Once you are approved, CapStream issues bid bonds at no charge, as fast as 1 hour. Send us the bid details and an estimated job cost breakdown and we take it from there. If you win the job, the performance and payment bonds follow from the same bonding line.
What a bid bond does
Public owners require a bid bond so they are not left exposed if the low bidder walks away. The bond is usually written for 5% to 10% of your bid amount, and it stays in force only through the award period.
If you are awarded the work and refuse the contract, the owner can claim the difference between your bid and the next acceptable bid, up to the bond amount. Because that exposure is limited and short lived, bid bonds are the easiest bond to obtain.
Typical amount
5% to 10% of your bid, set by the bid documents.
Typical cost
Often a flat issuance fee rather than a percentage of the contract.
Turnaround
As fast as 1 hour once you are approved. Turnaround depends on complete information and underwriting review.
How to get a bid bond
Share your company details
Company information, financials, and the jobs you have completed.
Get an approved bonding line
Your line sets the single job and aggregate limits you can bond within.
Request the bid bond
Send the bid documents, the owner name, the bid date, and the bid amount.
Receive the executed bond
Submit it with your proposal, then convert to final bonds after award.
Bid bonds are pulled against a bonding line, so once your line is in place you can bid repeatedly without starting over. After the award you will need performance and payment bonds. For how premium is priced on those bonds, read how much a surety bond costs.
Bid bond questions
Once you are approved, bid bonds can be issued as fast as 1 hour after you send the bid details and an estimated job cost breakdown. Turnaround depends on complete information and underwriting review.
Business financial statements, an overview of completed jobs, and detailed bid or contract information for the project you want bonded.
Payment and performance bonds can be issued as fast as same day once the contract information has been sent and reviewed. Turnaround depends on complete information and underwriting review.
Need a bid bond for a job you are pricing right now?
Requesting a bond or loan does not affect your credit.