Bid bond
A type of construction bond issued and guaranteed by a surety carrier to provide financial coverage to a principal.
A bid bond is a type of surety bond that protects the project owner by ensuring that the winning bidder will undertake the contract at the bid price. It provides financial assurance and reduces the risk of project abandonment or non-performance. In construction, a bid bond is often purchased by a contractor hired to perform the work for an Owner to act as an insurance policy for compensating the Owner in the event that the contractor fails to honor the terms of the awarded bid.
Used in a sentence
To ensure our bid is taken seriously, we must submit a bid bond along with our proposal.
Synonyms/variation
Bid Security
Surety Bond
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Procore’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Bid bond
Qualifications-Based Selection: Prioritizing Expertise over Initial Cost
For large or complex construction projects, owners and public agencies often use qualifications-based selection (QBS) to prioritize experience and capability over merely selecting the lowest bid. QBS involves owners choosing architectural and construction firms that are most qualified for the work based on their relevant experience, track record of success and proposed approach to the […]
Mitigating the Impact of Tariffs in Construction
The construction industry faces constant financial uncertainty, and the 2025 escalation of global tariffs mandated by executive order drew attention to their potential impacts. While no crystal ball can tell exactly when they will go into effect, how long they will last or how much they will fluctuate, one thing is certain: Tariffs can affect the […]
Understanding Subcontractor Bid Packages in Construction
Construction bid packages can have a cascading impact on the success of a construction project. The quality of a bid project may affect the quality of the bids, which in turn can impact the project budget and the final outcomes of the work. This article will discuss the importance of bid packages in the contractor-subcontractor […]
Off-Site Construction: Prefab vs. Modular
As the construction world becomes ever more competitive, deadlines get tighter and the margin for error gets slimmer, project owners around the world are always looking for an edge. Thanks to major advances, off-site building offers a solution to many common problems, such as building in harsh climates, limited on-site construction time or other issues. […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.