American Surety Bonds Agency, LLC provides simplified and fast underwriting for all Bid Bonds.
A Bid Bond is a type of contract bond that guarantees that the bidder will bid on the project in good faith and can procure the requisite payment and performance bonds within the amount of time specified in the bid specifications once the contract is awarded.
Bid bond amounts are usually a percentage of the total bid amount (5, 10 or 20%); however, they are underwritten on the entire bid amount as they guarantee the Principal can obtain payment and performance bonds in the amount of the full contract price.
What are the underwriting guidelines?
Despite the fact that Bid Bond amounts are usually only a percentage of the bid amount, they are underwritten on the full bid amount. Bid bonds are underwritten using the following criteria:
- Bid Amount
- Personal and Corporate Credit History
- Personal and Corporate Net Worth
- Personal and Corporate Assets
- Total Work on Hand
- Previous Experience
- Scope of Work
How much does the bond cost?
In most cases, if there is a payment and performance bond requirement in the bid specifications, the bid bond is free! We can still help if there is no final bond requirement. Contact us today for rates.
Contact us today to find out which program you qualify for.
How do I apply for a Bid Bond?
There are two ways to apply for a Bid Bond: Fast Track or Traditional Bond Kit.
- Fast Track Application—A Fast Track application can be used for projects or contracts under $250,000. Fast Track applications rely heavily on personal credit history.
Simply complete the Fast Track application and submit with the following items:
- Bond Kit Application—A traditional Bond Kit application can be used for all contract regardless of size or scope of work.
Simply complete the Bond Kit application and submit with the following items:
- Copy of Contract or Bid Specs
Who can I contact for more information?
MM, Senior Underwriter
Are there any other bonds I might need?