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Contract bond

Tennessee Bid Bond. Free.

Tennessee requires a bid bond of 10 percent on construction manager contracts for public work, under T.C.A. 62-6-129. Bid security on other public works is usually set in the bid documents by the awarding body.

  • Required by The city, county, state authority or board of education awarding the contract
  • No charge, the same for every applicant
Start the applicationWho needs this bond
  • Soft credit check only
  • A-rated surety carriers
  • Issued through Propeller Bonds
  • See your price before you pay
Your price

Free

  • Soft credit check only
Start the application

A fixed price set by the surety. No surprises at checkout.

Price checked on Propeller Bonds' application, Oct 15, 2026.

How it works

Three steps to your bond.

  1. 01Apply onceTell us about your business and what the bond is for. One application covers most contractor bonds.
  2. 02The surety reviews itPropeller Bonds, our surety partner, reviews your application and sets the terms. We show you the terms before you commit.
  3. 03Sign and fileSign the bond and file it with whoever requires it: the project owner, agency or court. We help with the filing.
The application

What you'll be asked, before you start.

Propeller's application for this bond has 36 questions, plus your consent to a soft credit check that doesn't affect your credit score. Have these to hand and it takes a few minutes.

Good to know for this bond
  • Once your application has been submitted and established in our system, your assigned underwriter will be in touch regarding next steps. Thank you!
From Propeller Bonds' application, checked Oct 15, 2026.

About the bond

Dates and numbers for this bond.

  • Bond amount
  • Effective date
  • Estimated contract value
  • Anticipated Contract Completion Date

About your business

Who the bond is for and how to reach you.

  • Year company was founded
  • Type of entity
  • DBA Name (if applicable)
  • Address line 1
  • Address line 2
  • City
  • State
  • Zip code
  • Contact person first name
  • Contact person last name
  • Contact person position
  • Is contact person the Business owner?
  • Business owner first name
  • Business owner last name
  • Years in business
  • Phone
  • Email

Underwriting questions

Short questions the surety uses to approve the bond.

  • Construction Specialty (General, Roofing, Electrical etc)
  • Largest Project completed in the last 3 years (Dollar value of project)
  • Current Total outstanding Work on Hand
  • Brief description of the largest project (scope and duration of project)
  • Are there any unfinished bonded contracts with other sureties?
  • Failed in business or been in bankruptcy?
  • Failed to complete a contract or had a paid claim with a surety?
  • Been involved in any litigation or delinquent with any payroll?
  • Had state or federal tax liens within the last 3 years?
  • Were you bonded in the past?
  • Owner/Obligee
  • Project Description/Location
  • Anticipated contract start date
  • Maintenance period
  • Liquidated Damages Amount

Start the application

About this bond

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 Tennessee

Tennessee requires a bid bond of 10 percent on construction manager contracts for public work, under T.C.A. 62-6-129. Bid security on other public works is usually set in the bid documents by the awarding body.

  • T.C.A. 12-4-201 lets cash or certain securities replace a bond at the percentage rate required for the bond.

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.

FAQs

Common questions.

How much does the Tennessee Bid Bond cost?

There's no charge for it. That's Propeller's set price for this bond, the same for every applicant.

Do I have to pay the full bond amount?

No. You pay the premium. The bond amount is the most the surety would pay out on a valid claim, and if it ever pays one, you pay the surety back.

Is there a credit check?

A soft one. Propeller's application asks you to agree to a soft credit inquiry, which doesn't affect your credit score. Your credit can change the rate, and you see the final price before you pay.

What does a Tennessee bid bond guarantee?

That you'll sign the contract and furnish the required performance and payment bonds if your bid is accepted. If you don't, the owner can claim the difference between your bid and the next one, up to the bond amount.

Can I use a check instead of a bid bond?

Many public owners also accept a certified or cashier's check as bid security. The bid documents list what's accepted. A bond keeps your cash free for the job.

What happens after I win?

The bid bond ends once you sign the contract and deliver the performance and payment bonds. The same application can prequalify you for those bonds.

How do I get one through BLDAssure?

Apply once with us. We collect the details the surety needs, Propeller Bonds (our surety partner) reviews the application and issues the bond, and we help you file it with whoever requires it.

Related bonds

Other Tennessee bonds.

See all 82 Tennessee bonds with prices →

Contract bond

Tennessee Performance & Payment Bond

Performance and payment bonds usually come as a pair once you win a job.

ApplyBond details →
Contract bond

Tennessee Maintenance Bond

A maintenance bond, also called a warranty bond, guarantees your finished work is free of defects in materials and workmanship for a set period, often one or two years.

ApplyBond details →
Contract bond

Tennessee Supply Bond

A supply bond guarantees a supplier will deliver materials or equipment as the contract says.

ApplyBond details →
By state

Bid bonds in other states.

Federal bid bondAlabama bid bondAlaska bid bondArizona bid bondArkansas bid bondCalifornia bid bondColorado bid bondConnecticut bid bondDelaware bid bondDistrict of Columbia bid bondFlorida bid bondGeorgia bid bondHawaii bid bondIdaho bid bondIllinois bid bondIndiana bid bondIowa bid bondKansas bid bondKentucky bid bondLouisiana bid bondMaine bid bondMaryland bid bondMassachusetts bid bondMichigan bid bondMinnesota bid bondMississippi bid bondMissouri bid bondMontana bid bondNebraska bid bondNevada bid bondNew Hampshire bid bondNew Jersey bid bondNew Mexico bid bondNew York bid bondNorth Carolina bid bondNorth Dakota bid bondOhio bid bondOklahoma bid bondOregon bid bondPennsylvania bid bondRhode Island bid bondSouth Carolina bid bondSouth Dakota bid bondTexas bid bondUtah bid bondVermont bid bondVirginia bid bondWashington bid bondWest Virginia bid bondWisconsin bid bondWyoming bid bond

Sources

  1. Tenn. Code Ann. § 62-6-129
  2. Tenn. Code Ann. § 12-4-201

General information, not legal advice. Rules change; confirm the current requirement with the agency or owner that asks for the bond. Facts checked Oct 23, 2026.

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