Handshake With Skyline in BackgroundYou want to advance your company and grow your business. You want to land this next big contract and secure a future for yourself and your business. To do that, you need to convince the company that needs the work that you are the best company for the job. Yet, there's competition. One of the ways you can improve your ability to land that gig is simply to have a few protections in place for the client. A bid bond can and should be a part of those options. What can this type of financial investment do for you and, more importantly, when is it beneficial?

What is a Bid Bond?

A bid bond is a type of surety bond. It is provided by a surety company. Its specific function is to protect the client from the promises you make. In short, it helps to promise that the bidder on the project — which is your company — will enter into a contract that maintains the terms, payments and required performance bonds you've promised. In other words, if you make promises in your bid for the project to meet specific requirements — such as obtaining a performance bond — you will do so.

If you fail to provide a contract with the terms you've promised, the surety company that issued the bid bond will likely be responsible for protecting the client from the mistakes made or lack of protections in place.

Who Needs to Provide a Bid Bond?

Bid bonds should be in place on most projects. It is most important when applying for a project with the federal, state or local government offices, since these often require the use of surety bonds. Additionally, many private clients — especially those with high-value projects — will appreciate having this level of assurance in place as well.

A bid bond isn't something to overlook in terms of its value and importance on the job. Work closely with your contract holder to ensure you've done everything you've promised to ensure the project goes the way the client expects. Though inexpensive and usually easy to obtain, these bonds give you the edge over other clients and help to ensure the client your business is worthy of being worked with on the project.

Get the right protections for your business. Call Buschbach Insurance Agency at (708) 423-2350 for more information on Chicago IL surety bonds.
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