NWagencies Surety Services- Bid

Bid

Do you have a construction project coming up in the next few months?

Did you know that there are several ways to get the best bid bonds for your projects? You can obtain bid bonds from banks, public utilities, and private organizations.

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What Is a Bid Bond?

The Bid Bond protects the owner or developer in a construction project by providing financial guarantees if the winning bidder defaults. It is meant as a form of insurance to safeguard risks that come along with bidding on contracts. An unsuccessful bidder may have limited unencumbered assets worth less than $500,000.00 that would prevent it from performing its obligations under the agreement, resulting in increased cost for the general contractor and costly disruptions to completion, and substantial delay of project schedule.

Bid Bonds incorporates both public and private construction projects. If you’ve never heard of them before now, don’t worry, you’re not alone! But understanding these bonds is essential to stay informed about potential risks associated with your business.

Bid bonds are a common requirement on projects that also involve performance bids and payment bonds.

How Does a Bid Bond Work?

Bid bonds protect against loss of revenue if a contractor defaults and prevents awarding bodies from paying twice for the same project.

A bid bond company can provide you with coverage and processes your application on your behalf. It can be obtaining a bond for the amount of work, issuing it in your name as provided by law, and promise they will undertake all legal action necessary when a contractor defaults.

A contractor can default by not completing the work contracted or failing to meet contract conditions.

Bid Bond Requirements in Texas

Getting a surety bond is very important if you want your company to become competitive in Texas’ construction industry. Most importantly, almost all project owners and developers require a bond from you before you can bid on their projects.

  • For each job, the bond needs to have an amount attached for the entire contract prices and the percentage damages for the bid if the bidder does not take the job.
  • Active bonds that a corporate surety company issues is approved
  • Suppose the proposed surety is a company or individual. In that case, the company or individual must show sufficient resources to guarantee the government’s guarantee.

Security Bidding: Secure Your Bid Bonds at the Best Rate

Protect yourself and your client with bid bonds from Northwest Insurance Agency.
With bid bonds, you can rest easy knowing that your money is protected should anything happen to it while working for someone else’s project. You’ll have peace of mind knowing that no matter what happens, we’re here for you.

Call us today for more information about bid bonds from Northwest Insurance Agency!

NWagencies Surety Services- Bid

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