Bidding a CA Public Works Job? See Your Bid Bond Cost in Seconds.
Enter your bid amount, the required security percentage, and your credit band. Get the bond face amount and a real premium estimate - including the "$0 with P&P" courtesy pricing most established accounts get.
Estimate only. Cal. Pub. Cont. Code §§ 10167, 20170. Full surety underwriting required before issue.
Estimate Your Bid Bond Face Amount and Premium
How California Public Works Bid Bonds Work (and How They Differ From P&P Bonds)
A bid bond is a single-use surety promise tied to one specific project. It guarantees two things to the awarding authority: (1) that your bid is submitted in good faith, and (2) that if you are the low responsible bidder, you will sign the contract and provide the required performance and payment bonds. If you back out or cannot bond up, the agency calls the bid bond and the surety pays the difference between your bid and the next-lowest bid.
On California public works, bid security is mandatory. Cal. Pub. Cont. Code § 10167 requires bid security on state agency projects and sets the amount at "at least 10 percent of the amount bid," and Cal. Pub. Cont. Code § 20170 imposes a parallel bidder-security requirement on cities, counties, school districts, and special districts.
The bid bond is the smaller, gating bond. The much larger commitment comes after award: a California performance bond at typically 100% of the contract amount, plus a payment bond at typically 100% to protect subs and suppliers. The surety underwrites the whole picture at the bid-bond stage because it is effectively pre-committing to those P&P bonds.
When 5% Applies vs When 10% Applies
The statute sets a baseline, but the project specifications control. Always read the bid documents for the exact security requirement before pricing the bond.
Source: Cal. Pub. Cont. Code § 10167 · § 20170
The Bid Bond to Performance/Payment Bond Pipeline (Why the Bid Bond Is Usually Free)
This is the most important point on the page. The bid bond is not a standalone product the surety is trying to sell you - it is a screening tool the awarding authority uses to confirm you can actually perform if you win. The surety prices it accordingly.
For an established contractor with an open surety account: the bid bond comes out of the program at no separate charge. The surety knows your financials, has an aggregate program authority approved, and treats the bid bond as part of the relationship. You will see a $0 line on the invoice for the bid bond itself, with the real premium hitting when the performance and payment bonds are issued on award.
For a one-off bid by a contractor without an open account: the surety still has to underwrite the entire job (financial statements, work-in-progress, references, personal indemnity), so the bid bond is priced as either a flat minimum ($100 to $300 with strong credit) or as a percentage of the bond face (0.5% to 1% on fair credit, 1% to 2% on poor credit). Many carriers will refund or credit the bid bond premium when the P&P bonds are issued on award - ask for that explicitly.
The practical takeaway: if you plan to bid public works regularly, the right move is to set up a surety relationship before the first bid - not to chase the cheapest bid bond on a single job. The credit decision that gets you the bid bond is the same credit decision that gets you the performance and payment bonds on award, and those are where the dollars live.
How to File the Bid Bond With the Awarding Authority
The bid bond must be in the bidder's sealed bid envelope at the bid opening - no exceptions. Late or missing bid security is a non-responsive bid and gets your submission rejected on the spot under Cal. Pub. Cont. Code § 10167.
- Use the awarding authority's bid bond form. State agencies (DGS, Caltrans) and most school districts publish a specific bid bond form with the solicitation. Generic surety bid bond forms are accepted only when the spec does not require a specific form.
- Verify the principal name matches your bid exactly. The bond must name the bidder as it appears on the bid - same entity, same DBA, same license number.
- Confirm the obligee is the correct awarding authority. "State of California, Department of General Services" is not the same as "Caltrans" or "Department of Water Resources." Read the bid documents for the exact obligee name.
- Match the bond amount to the bid security requirement. If the spec says 10% and your bid is $850,000, the bond face is $85,000. The bond amount is on its face, not the bid amount.
- Attach the original power of attorney from the surety. The bond must be signed by the attorney-in-fact with the corporate seal, and the original POA goes with the bond. Photocopies are not accepted.
- Place the original bond inside the sealed bid envelope before the bid deadline. Keep a copy for your file.
For full bid bond mechanics and obligee-specific forms across all 50 states, see the bid bonds overview.
Frequently Asked Questions About California Bid Bonds
Why is my California public works bid bond usually free?
On most public works jobs the bid bond is a courtesy issued by the same surety that will write the performance and payment bonds if you win. Cal. Pub. Cont. Code Section 10165 (state projects) and Section 20170 (local projects) require bid security as a screening tool, not a profit center for the surety. The carrier earns its premium on the much larger performance and payment bond that follows the award - typically 1% to 3% of the contract value - so the bid bond is bundled in at no charge for established accounts.
When does the awarding authority require 5% versus 10%?
The default for California public works is 10% of the bid amount. Cal. Pub. Cont. Code Section 10167 fixes the state-project bid security at "an amount equal to at least 10 percent of the amount bid." Local agencies operating under Section 20170 commonly use the same 10%, though specifications may drop to 5% for smaller jobs or repeat prequalified bidders. Always read the bid documents - the project specifications control, not the statute alone.
Is a California bid bond single-use or annual?
Single-use. A bid bond is written for one specific project, identified by name, bid date, and awarding authority. It expires on its own terms once the award is made and the performance and payment bonds are filed (or once the bid is rejected). You will need a fresh bid bond for every public works job you pursue.
What underwriting does the surety need before issuing my bid bond?
Even though the bid bond itself is small, the surety underwrites the full job because it is committing to issue the performance and payment bonds on award. Expect to provide: contractor financial statements (year-end and interim), personal financial statements for owners, work-in-progress schedule, bank line of credit confirmation, references from major suppliers and subcontractors, and a copy of the bid documents. For jobs over $1M you typically need CPA-reviewed or audited financials.
What happens if I win the bid and cannot get the performance bond?
The awarding authority calls the bid bond. The surety pays the difference between your bid and the next-lowest responsible bid, up to the bond face amount. Your surety then pursues you for that loss under the indemnity agreement you signed. This is exactly why surety credit must be locked in before you submit the bid, not after. Confirm the exact forfeiture mechanics in the controlling solicitation - they track the State Contract Act for state work and the Local Agency Public Construction Act for local work.
Can I post a cashier check or letter of credit instead of a bid bond?
Yes. Cal. Pub. Cont. Code Section 10167 allows bidder security in the form of cash, a cashier check, certified check, or an electronic or signed bidder's bond from an admitted surety. Local agencies under Section 20170 follow the same options. The trade-off is that cash and certified checks tie up working capital from the moment you bid until the contract is awarded and bonds are filed - often 30 to 90 days - while a bid bond costs little or nothing and frees that capital up for other jobs.
How do I deliver the bid bond to the awarding authority?
Attach the original bid bond - with the power of attorney from the surety - to your sealed bid envelope. Photocopies and digital files are not accepted as bid security on most California public works solicitations. The bond must name the correct project, the exact awarding authority, the bid amount, and must be signed by the attorney-in-fact with the corporate seal.
What is the relationship between the bid bond and the performance bond?
The bid bond is the surety promising that if you win, it will issue the performance and payment bonds and you will sign the contract. Cal. Pub. Cont. Code Section 10221 requires every state contract to call for separate performance and payment bonds; the contract amount percentage (typically 100% performance and 100% payment) is set by the solicitation, not the statute. Treat the bid bond as the gateway: the same credit decision that gets you the bid bond gets you the P&P bonds on award.
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