Bid Surety Bonds ensure that the bidder (applicant) on an agreement will enter into the agreement & endow the required payment & performance if awarded the agreement. Bid bond companies use these agreements as money related security for contract bid proposals, especially for large projects, for example, commercial developments.
The main objective of a bid surety bond is to ensure that the low-bidding contractor will stand behind the amount cited in his bid. This keeps the contractor from expanding the bid on the project after entering into a contract with the developer.
A bid bond includes three parties:
Obligee: the corporate or government entity who looks for the financial protection of a bond to ensure that their project is finished by the contractor or construction organization for the proposed low bid.
Principal: the contractor who buys the bond to guarantee financial integrity.
Surety: the office who issues the bond to the principal.
If you are a contractor & new to surety bonds & need some guidance on surety bid bonds, Surety Bond Professionals offers a quick & easy process for acquiring bid bonds, with the least amount of hassle.
Get your free quote today by using our surety bid bond application form : http://www.suretybondprofessionals.com/bid-bonds/