Bid Bonds
Issued nationwide by Machaen Insurance Agency, backed by A-rated, Treasury-listed sureties.
Overview
A bid bond is submitted alongside a contractor's bid proposal and guarantees that if the contractor is awarded the project, they will sign the contract and provide the required performance and payment bonds at the agreed price. Bid bonds are typically set at 5% to 20% of the total bid amount and protect the project owner from the cost of re-bidding if the low bidder backs out or fails to execute the contract.
Who Needs This Bond
- General contractors submitting a bid on a public or private construction project
- Specialty trade subcontractors bidding on bonded subcontracts
- Contractors who need to establish bonding capacity before a bid deadline
How Much Does It Cost?
Bid bond premiums are typically nominal, often issued at no direct cost or a small flat fee once a contractor's overall surety program is established, since the real underwriting happens at the performance and payment bond stage. What matters most to the surety is whether the contractor can be approved for the full bond amount if the bid is won.
How to Get Bonded
Apply
Complete a short application with your business and coverage details.
Get Quoted
We shop the market among A-rated carriers for the most competitive terms.
Get Covered
Sign your agreement and receive your bond or policy, often within a few business days.
Stay Compliant
We track renewal dates so your coverage stays active without a lapse.
Frequently Asked Questions
What happens if I win the bid but can't get bonded?+
If a contractor cannot provide the required performance and payment bonds after winning, the surety may be liable to the owner for the difference between the contractor's bid and the next lowest bid, up to the bid bond amount, and the contractor becomes responsible for reimbursing the surety.
How fast can Machaen Insurance Agency issue a bid bond?+
Once your underwriting file is established, bid bonds can typically be issued within hours of a bid deadline. First-time applicants should reach out as early as possible so we can prepare your file in advance.
Is a bid bond the same as a deposit?+
No. A bid bond is a third-party guarantee backed by a surety company, not cash held by the owner. It signals that you have already been vetted and are financially capable of completing the project if awarded.
Get a Quote for This Bond
Speak with our surety team about your Bid Bonds requirements.
201-316-4159
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