Thing not to do in bid bond

1. Thing not to do in bid bond

2. Surety bond is an important term for business services as well as industries. In the entire list of bonds construction bond is mostly used to carry out business transactions. Construction bond is further divided into sub types so that the bond can become more specific and the entire construction project can be done without any hazards.

3. The very first type among contractor bonds is bid bond and it is required in the beginning when the contractor is making bids to gain the project. The other name of bid bond is tender bond, the main objective of bid bond is to provide the assurance to the project owner that the contractor who is making the bid is a reliable person and his financial capability is strong enough to perform the job under the price that is mentioned in the bid.

4. Time taken to get a bid bond • To get the bid bond one has to go through a set procedure like getting quote, prequalification process and then validation by the underwriter. The whole process can be done within an hour sometimes it might take more time, hence one can say that it is totally an unpredictable time based task; what time you get your bid bond is not predictable. One thing you can do is find some trustworthy surety Bond Company who can get you a bid bond as soon as possible.

5. Get the bid bond at right time • Contractor should be sure that he has the bid bond at the right time. Never mislead the project owner by giving false statements. For example if the bid is for 10th but you mentioned it for 6th so that they don’t mess up with you. This is totally a wrong strategy because the underwriter can demand for the copy of your bid invitation and can cross check the dates. In case any anomaly is found in your statement and the actual situation you stand the chance of losing your bid bonds.

6. New project and no time to get bid bond • When the new project opportunity pops up in front of you but you don’t have enough time to get the bid bond what will you do? Will you leave the job or submit your bid without providing them surety? What action you take matters a lot as the step you take will get the bid or you may lose the bid. The best thing you can do is submit the e-copy of you bid bond as most of the obliges will accept this on temporary basis.

7. What if the amount increases • Normally these types of situation do occur when the bid amount increase from your expected bid amount at the last moment. What will you do in such condition? • Place false bid and then claim that there is some communication error? • Bid the project and then plan to get another surety bond. • Never make bids on such projects.

8. Last minute changes occur in many events and biddings. How one copes with the problems matters a lot. This best solution in this situation is to make a presentation to the underwriter and try to gain support or trust from their side. • Bidding is the first step to get any project hence in this bid bonds play an important role. Bid bonds should be bought at a proper time and should be used in a proper way.