What a bid bond is
A bid bond is a guarantee you submit with your bid. It tells the project owner that if you win, you'll sign the contract at your bid price and provide the performance and payment bonds the contract requires. If you walk away, the surety pays the owner's loss up to the bond amount, and you repay the surety.
In Georgia
Georgia law requires a bid bond with bids on state public works construction contracts. The bond is at least five percent of the total contract amount, or the owner may accept a cashier's check, certified check or cash.
- A bid is not complete without the required bid bond.
- Dollar thresholds changed for contracts on and after July 1, 2025 (House Bill 137). Check the current statute.
You need this bond if you're
- A general contractor bidding public works
- A subcontractor whose general contractor asks for bid security
- A contractor bidding a private job where the owner asks for one
- A design-build team bidding a public project
What the surety looks at
Your business details, credit, experience and the job you're bidding. Larger jobs can also need financial statements and a list of work in progress.