A bid bond is required by government agencies and project owners in construction projects to ensure that bidders submit serious and qualified bids while providing financial protection in case the selected bidder fails to enter into a contract or refuses to honor their bid. And guess what? It's completely FREE

Bonding thresholds for bid bonds can vary depending on the level of government and jurisdiction. Here are general guidelines, but it's important to check specific requirements for each project and location:

Federal Level:

Per the Miller Act federal projects typically require bid bonds for contracts exceeding $100,000. Click here to learn about our exclusive federal construction bonding programs.

State Level:

Per the Little Miller Act State requirements vary widely, and bonding thresholds can range from $25,000 to $500,000.

Each state sets its own limits, so it's crucial to research the requirements in the specific state where the project is located. Click here to find your state.

County/Local Level:

County and local governments also have their own bonding thresholds.

These can range from a few thousand dollars to several hundred thousand dollars, depending on the jurisdiction and the project's scope.

Private Construction Level:

Private construction companies set their own bonding thresholds.

If the project value is below the threshold, a bid bond may not be necessary, but it's important to review the project specifications to confirm the requirements.

It's vital for construction companies to familiarize themselves with the bonding thresholds and requirements specific to the level of government and jurisdiction where they are bidding on projects. Consulting with us or reviewing bidding documents can provide more accurate and up-to-date information on the bonding thresholds for bid bonds. Contact us or Call Us

Not having a bid bond can have severe consequences for your dream project. Without it, project owners may overlook your bid, questioning your reliability and commitment. Even if you secure the project, the absence of a bid bond leaves you vulnerable to unforeseen challenges and potential abandonment. The financial burden, legal implications, and damage to your reputation can be overwhelming. However, with a bid bond, you gain protection, confidence, and access to dream projects. It's the key that opens doors and shields you from the haunting consequences of not having one. Embrace the bid bond as your ally in pursuing success and ensuring your dreams shine bright.

Yes! When it comes to bid bonds, You won't have to pay anything upfront! The cost of the performance and payment bonds should be included in your estimate, just like other project expenses. Once and if you are awarded the project, we will invoice you for the cost of the performance and payment bonds. Just please make sure to include it in your estimate, just like other project expenses. Click here to use our free bond cost calculator tool to see what it will cost you

Rest assured, we understand that everyone's situation can have a reasonable explanation. We are here to work with you through the process and build trust. Here are four key aspects that the surety company will consider:

• Current payment status: If there are any payment concerns, we will listen to your story and discuss the possibility of a payment plan to address them.

• Tax liens or judgments: If there are any open tax liens or judgments, we will seek to understand the situation and explore options such as implementing a payment plan or finding a resolution.

• Bankruptcy status: If there are any open bankruptcies, we will inquire about the details and assess the time since discharge, taking into account your circumstances.

Our aim is to establish a transparent and collaborative relationship, working together to address any concerns and find suitable solutions.

Bid Bond:

• Three-party agreement involving the obligee (owner), contractor, and surety company.

• Specifically issued for a project on an as-needed basis.

• Ensures commitment to the project and protects the obligee if the contractor backs out.

• Amount is based on the bid estimate price.

Insurance:

• Two-party agreement between the contractor and insurance company.

• An ongoing policy that provides coverage for various risks and liabilities.

• Protects against damages and liabilities that may arise during the project.

• Premiums are determined based on the risk and coverage required.

Key Differences:

• Bid bond involves three parties (obligee, contractor, surety), while insurance involves two parties (contractor, insurance company).

• Bid bond is project-specific, issued on an as-needed basis, whereas insurance is an ongoing policy.

• Bid bond ensures commitment and protects against contractor withdrawal, while insurance covers risks and liabilities during the project.

• Bid bond amount is based on the bid estimate price, while insurance premiums are determined based on the required coverage and risk assessment.

When it comes to ensuring that your bid bond is issued by a financially reliable surety company, there are a few key factors to consider. Understanding these factors will help you have confidence in the surety company you choose to work with.

Firstly, it is important to verify if the surety agency and company are licensed to conduct business in the state where the bid bond is required. Checking their licensing status ensures that they are authorized to operate in your area and have met the necessary regulatory requirements. You can easily find out if your current surety company is licensed in your state by clicking here to find the US Treasury list of approved surety companies.

Another crucial aspect to consider is the AM Best Rating of your surety company. A.M. Best Company, Inc. is a highly regarded rating agency that assesses the financial strength and stability of insurance and bonding companies. Their ratings reflect the company's ability to fulfill its financial obligations, including claim payments. A.M. Best is recognized as a National Statistical Rating Organization, holding significant credibility in the industry.

A.M. Best employs a ratings scale that categorizes companies based on their financial security. The top ratings are A++ and A+ (Superior), followed by A and A- (Excellent), and B++ and B+ (Good). Ratings below B+ are considered 'vulnerable'. At Kingdom Bonding Inc., we exclusively partner with surety companies that hold an A+ rating from A.M. Best. This emphasizes our commitment to working with financially secure and reliable entities.

Our founder and owner, Neb Aynu, understands the importance of establishing strong relationships with surety companies. He recognizes that each company has its unique strengths and specialties, enabling us to match your specific needs with the most suitable surety partner. You can click here to search for the A.M. Best Rating of all surety companies and verify the rating of your current surety company.

By considering these factors, you can ensure that your bid bond will be issued by a financially reliable surety company. At Kingdom Bonding Inc., we prioritize these criteria to provide you with peace of mind and confidence in the surety company you choose. If you have any further questions or require additional assistance, please feel free to reach out to us.