BidBonds
Get bid bonds to compete on federal, state, and local construction projects. Often FREE for qualified contractors with performance and payment bonds. No payment required until your bond is issued.
Get Your Bid Bond
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Get Your Bid Bond Quote
Often FREE with P&P bonds
Pay only after your bond is issued • No obligation • 2 minutes
How Bid Bond Amounts Are Calculated
Federal projects require 20% of bid amount under FAR 28.101-1. State and municipal projects typically require 5-10%.
The bid bond amount is not what you pay—it is the maximum the surety will cover if you fail to honor your bid. For cost details, see our surety bond cost guide or use the bid bond calculator.
What Is a Bid Bond?
A bid bond is a type of contract bond that guarantees a contractor will honor their bid if awarded the project and will provide the required performance and payment bonds. It is the first bond in the three-bond sequence required on most public construction projects. Understanding what a surety bond is helps clarify the three-party relationship: the project owner (obligee), the contractor (principal), and the surety company (guarantor).
Unlike insurance policies where the insured is protected, a bid bond protects the project owner. If a winning bidder withdraws or cannot provide the required bonds, the surety pays the owner the difference between the winning bid and the next lowest bid—up to the bid bond amount. This eliminates the risk of frivolous bids and ensures only serious, capable contractors compete for public work.
Miller Act & State Bid Bond Requirements
The federal Miller Act requires bid bonds for federal construction contracts over $150,000. State "Little Miller Acts" impose similar requirements with varying thresholds. For the complete process, see how to get a surety bond.
Federal Contracts
State Projects
Municipal
State Bid Bond Thresholds at a Glance
Every state's Little Miller Act sets its own bonding thresholds. Many states that require contractor license bonds also mandate bid bonds for public projects.
Low Threshold
- California — $25,000
- Texas — $25,000
- Arizona — $0 (all projects)
Mid Threshold
- Florida — $100,000
- New York — $100,000
- Colorado — $150,000
High Threshold
- Indiana — $200,000
- New Jersey — $200,000
- Virginia — $500,000
How Bid Bonds Work
The first step in construction project bonding
Submit Bid with Bond
Include a bid bond with your proposal. The bond guarantees you'll honor your bid if selected.
Win the Contract
If you're the winning bidder, you must enter into the contract at your bid price.
Provide P&P Bonds
After winning, you'll need to provide performance and payment bonds before work begins.
After winning, the bid bond is released and replaced by performance and payment bonds. For a walkthrough of the full bonding process, see our guide on how to get a surety bond.
What Do Bid Bonds Cost?
Bid bonds are one of the most affordable surety bonds available. For qualified contractors who also purchase performance and payment bonds, bid bonds are typically free of charge. The surety includes them at no additional cost because the bid bond is a commitment to provide the P&P bonds if the contractor wins.
When purchased separately (less common), bid bonds typically cost $50-$100 regardless of project size. For detailed cost breakdowns across all surety bond types, visit our cost center. You can also use the bid bond calculator for a quick estimate.
Frequently Asked Questions
Common questions about bid bonds
What is a bid bond?
How much does a bid bond cost?
What is the bid bond amount?
How fast can I get a bid bond?
Do I need a bid bond for every project?
What is a bid bond used for?
What happens if I win the bid but can't perform?
State Contractor Bonds
License bonds required before bidding in many states
Ready to Win More Contracts?
Get bid bonds to compete on federal, state, and local projects. Often free for qualified contractors when bundled with performance and payment bonds. You never pay until your bond is issued.