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 Mississippi
Mississippi law requires bids on state highway construction and reconstruction contracts to include a cashier's check, certified check or bidder's bond of at least 5% of the bid. State building projects run by the Bureau of Building, Grounds and Real Property Management also require bid security of at least 5% of the base bid.
- City and county bid notices in Mississippi commonly ask for bid security of 5% of the bid; the exact rule is in each bid package.
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.