What Is A Bid Bond?

Sara

Moreover, the price or cost of the project is agreed upon here as well, as this influences the Bid Bond in Detail Construction projects are commonly subcontracted to companies who will then be responsible for finishing a specific part of the building. Owners or investors are then assured that they have the means to accomplish their part of the project. One of the ways to do it is to get a bid bond. It works out because these contractors are then giving a certain amount of money from a third-party guarantor who will eventually become liable as well for any financial obligations should the contractor not fulfill the terms of the job.

Read More