Larger Bond Threshold for Arkansas’ Public Construction Contracts
Beginning on the 4th of July this year, the State of Arkansas will increase the threshold at which bid bonds are required on state public construction contracts. In the past, a contractor would be required to furnish a bid bond on any state construction contracts valued at $20,000 or greater. In lieu of legislation passed on March 28th, that new threshold is set at $35,000. This threshold increase will likely encourage more contractors to bid on lower value government contracts. Subsequently, the state will have more options when choosing a contractor for a project worth $35,000 or less, but can no longer rely on the guarantee of a bid bond.
A bid bond is a debt secured by a bidder for a construction job or similar type of bid-based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected.
If you are seeking a bid bond, please see our Fast Track Application or apply at suretybondsagency.com
State of Arkansas
91st General Assembly A Bill
Regular Session, 2017 HOUSE BILL 1595
By: Representative Holcomb
By: Senator Caldwell