Bid Bond
Bid bond definition for contractors. Learn how this guarantee protects project owners if a winning bidder refuses the contract.
Calculation Formula
Bond Amount = (Bid Total × Agreed Bond %) Real Contractor Example
A contractor bids $1M on a municipal project. A 5% bid bond ($50,000) guarantees they will sign the contract if selected.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.