Bid Bond
/ˈbɪd bɑnd/
Definitions
- (n.) A surety bond issued by a bidder to guarantee the bidder will enter into the contract if awarded.
The contractor submitted a bid bond along with the tender documents to assure the project's owner of performance commitment.
Forms
- bid bond
- bid bonds
Related terms
See also
Commentary
Bid bonds serve as a financial guarantee in procurement processes to protect owners against bidders who fail to honor bids.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.