What does bid bond mean in construction?
Short definition
A bid bond is a surety bond that helps protect the owner if the selected bidder does not honor its bid.
Longer explanation
Bid bonds are common in competitive procurement and may be required with bid documents for public or private work.
Example in context
“The project team reviewed the bid bond during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers