bid bonds
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- Bid bonds are used by municipalities to insure a contractor won't overcharge for a project, like a school or hospital; they also keep people from underbidding jobs and changing the rules later.
- Danielle Rodabaugh joins Construction Law Musings this Guest Post Friday to discuss the utility of bid bonds to contractors and subcontractors.
- Bid bonds will be required for this bid.
- A popular subcategory of contract surety bonds is represented by bid bonds (provide financial assurance that the contractor intends to enter the contract at the price bid and provide the required performance and pre-negotiated payment .
- If your firm is located in NC and you have questions about bid bonds for federal construction projects, feel free to contact the North Carolina Military Business Center.
- Performance & bid bonds are required in many cases for a contractor to even be able to bid on a job; and any financial issue that raises a red flag has made it difficult for contractors to be approved for these bonds.
- Bid bonds typically range in value from one to three percent of the tender contract price.
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