Bid Bonds
A bid bond is provided
to the Obligee/Owner from the contractor in order to give assurance
that if the contractor is the successful bidder the contractor
can provide a payment and/or performance bond. If the contractor
is the successful bidder and decides not enter into a contract,
therefore failing to provide a payment and performance bond,
then the owner can make a claim on the bid bond for the difference
between the contractors bid and the lowest next bid or the amount
of the bid bond (5% to 20% of the bid amount) whichever is less.
In some cases the owner can claim the full amount of the bid
bond even if it’s more then the bid spread.
Performance Bonds
A bond which promises that the terms of a contract, or
some of them, will be performed by the Principal/Contractor.
Payment Bonds
A bond which promises to pay some or all of the persons
who provide material, labor, or services for prosecution of
a contract.
Performance and Bid Bonds - Submission Requirements
1.
Request for Bid or Performance Bond (form
attached). |
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2.
Contractor's Questionnaire (form
attached). |
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3.
Business Financial Statements for the past three (3) years.
(If last Fiscal Year is more than six (6) months old,
then please provide a current interim financial statement).
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4.
Personal financial statements of each owner (form
attached) |
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5.
Current Work on Hand Schedule. |
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6.
Business Bank Reference (form
attached) |
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7.
Resume of all key personnel (form
attached) |
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8.
Copy of Contractors State License |
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9.
Copy of General Liability Insurance. |
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10.
Copy of Articles of Incorporation |
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11.
Copy of Living Trust or Family Trust if applicable. |
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