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Reference.org
Bid bond
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<p>A bid bond is issued as part of a <a href="/facts/Construction_bidding/5JS3zpBh">supply bidding process</a> by the <a href="/facts/General_contractor/J1hJ8P93">contractor</a> to the <a href="/facts/Project_owner/gMMQuyQL">project owner</a>, to provide a guarantee that the winning bidder will undertake the <a href="/facts/Contract/SkqyGj6S">contract</a> under the terms on which they bid. </p><p>The bond penalty is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required <a href="/facts/Performance_Bond/wKrvldbr">performance</a> and/or payment bonds. The bid bond assures and guarantees that, should the bidder be successful, the bidder will execute the contract and provide the required <a href="/facts/Surety_bond/zzDK7dSX">surety bonds</a>. </p>