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Bid bond information


A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to provide a guarantee that the winning bidder will undertake the contract under the terms on which they bid.[1]

The bond penalty is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. The bid bond assures and guarantees that, should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.

  1. ^ "Bid Bond". Association of Corporate Treasurers. Archived from the original on 26 February 2009. Retrieved 2009-02-23.

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