Bid Bonds: Win More Contracts and Eliminate Competition
Stop losing projects to contractors who understand the game. Bid bonds aren't just requirements—they're your competitive weapon. Smart contractors use bid bonds to eliminate unqualified competition and win projects worth $100M+ annually.
Get qualified for bids in 24 hours • Federal projects to $3M bonds • All 50 states
✓ Federal/State/Local projects ✓ A- rated carriers ✓ Miller Act compliant ✓ All 50 states
Last Updated: July 19, 2025
What is a Bid Bond?
Understanding bid bonds and how they help contractors win more projects by eliminating competition
This video explains how bid bonds work as a competitive weapon for contractors, helping you win more projects while eliminating unqualified competition.
Apply for Your Bid BondWhy Bonded Contractors Win More Projects
The Federal Acquisition Regulation (FAR Part 28) mandates bid bonds at 20% of bid amount (capped at $3 million) for all federal contracts over $150,000. When bonds are required, approximately 70% of your competition is automatically eliminated because they can't get bonded. The SBA Surety Bond Guarantee Program provides detailed information on bid bonds and helps small businesses access these opportunities.
"A bid bond is a guarantee from a surety company to the project owner that a contractor is able to fulfill the obligations of the contract and provide contract bonds before work begins."— Nicole DeChiaro, Head of Surety Operations at Procore Risk Advisors
Bond Genius AI Bid Bond Requirements
All bid bonds require Bond Genius AI review and approval
- Business or Personal Financial Statements
- Project bid details and specifications
- Soft credit check acknowledgment
- Years in business and construction experience
- Current work-in-progress schedule
Real Contractor Success Stories
"We changed to Unique Surety after being with a bonding agent for 5 years. Unique Surety arranged for much higher performance bonding limits at a much better rate which opened the door to greatly expanding our business. Without Robin and her staff at Unique Surety we would absolutely not be where we are today."
— Kari
"As a small business, Unique Surety has provided the backing required for my company to take on pivotal projects that have allowed us to grow to be a strong contender in the South Florida construction market."
— Laurence K. Butler, Founder & President, Bespoke Construction Management
Market Growth Driven by Infrastructure Investment
The surety market has experienced unprecedented growth, reaching $21-22 billion globally in 2024 with projections to hit $35 billion by 2030. This growth is directly tied to federal infrastructure spending.
"The surety market has been very strong for many years, but the boost has come from the infrastructure package that came out in 2021."— Karl Choltus, National Surety Practice Leader at Brown & Brown
Key Market Drivers:
- Infrastructure Investment and Jobs Act: $568 billion allocated to 68,000 projects
- Contract surety bonds comprise 55-58% of total surety market
- North America commands 43% of global market share
Bid Bond Requirements by Project Type
Common Problems and Bond Genius Solutions
- AI-powered underwriting acceleration
- Email approval within 24 hours
- Immediate bond delivery after approval
- Credit is only 15% of evaluation
- Focus on experience and capacity
- Soft credit check won't hurt your score
- Begin with contractor license bonds (instant up to $25K)
- Build relationship and track record
- Graduate to performance and bid bonds
State-by-State Requirements (Bond Genius Coverage)
| State/Authority | Threshold | Bond Amount | Bond Genius Processing |
|---|---|---|---|
Federal (GSA) | $150,000+ | 20% (max $3M) | 1 business day, A- rating compliant |
| California | $25,000+ | 10% | Underwriting required (adverse clauses) |
| Texas | $100,000+ | 100% of contract | 1 business day approval |
| Florida | $100,000+ | 5-10% | AI review with fast decisions |
| All 50 States | Varies | Project-specific | Serving all 50 states coverage |
*Bond Genius AI is serving all 50 states with local jurisdiction expertise
Your Action Plan for Bid Bond Success
Based on Bond Genius AI best practices:
Apply Early
Submit bid bond applications as soon as you decide to bid - don't wait until deadline
Prepare Documentation
Have financial statements and project details ready before applying
Build Capacity
Start with smaller projects, perform well, increase bonding limits over time
Maintain Relationships
Work with Bond Genius consistently to build trust and streamline future approvals
The Bottom Line: Market Data Proves the Opportunity
With the U.S. construction market at $2.2 trillion and federal infrastructure spending driving unprecedented growth, bonded contractors are positioned to capture the most profitable projects while 70% of competitors remain locked out.
Key Statistics for 2025:
- $9.3 billion - U.S. surety market size (15.7% growth)
- $568 billion - Infrastructure Act funding allocated
- 68,000 - Active infrastructure projects
- 40% - Higher win rate with established bonding
- 1 Business Day - Bond Genius AI approval time
Ready to Win More Bids?
Bond Genius AI makes bid bonding fast and reliable:
Join the contractors winning the most profitable work. Get your bid bond application started and start competing for projects your unbonded competitors can't touch.