You can now get a Bid Bond (almost) instantly. For Bids under $100,000, click here 
For all bids greater than $100,000, get our Express Application form:
Express Application (click to download form)
- Complete the form and email to [email protected].
- Be sure to include the RFQ/ITB (bid specs from the obligee).
What is a Bid Bond in Arkansas?
A bid bond is one of the types of surety bonds, that guarantees that the bidder will accept the contract and complete it according to its terms. The bid bond provides assurance to the project owner that the bidder has the ability and ability to finish the job once the bidder is selected after the bidding process. The basic reason is that you need one to get the job. But the bigger question is why are more owners/developers requiring a bid bond in the first place? The basic answer is risk. Given the uncertainty of the marketplace, which includes long-time contractors going bankrupt, to municipalities filing bankruptcy (or just slow paying), has led to owners being afraid that their contractors will be unable complete the job. Thus, they require a some protection.
Just fill out our bond application here and email it to [email protected] - click here to get our Arkansas Bid Bond Application
A bid bond is issued as part of a bid by a surety bond company to the project owner. The owner is then assures that the winning bidder will take on the contract under the terms at which they bid.
Most bid bonds contain a bid percentage (usually five or ten percent, is forfeited if you don’t accept the job).
How much does a Bid Bond Cost in Arkansas?
Swiftbonds does not charge for a bid bond (with two exceptions, see below). The reason that we don't charge for a bid bond is that we will charge for the contract bond if you win the contract. The cost of a P&P bond can vary widely depending on the amount of coverage that is required (see below).
Two exceptions for bid bond charges:
1) We do charge for Overnight fees
2) We will charge you if there is NOT going to be a bond on the contract.
How much do bonds cost in AR?
Bond prices fluctuate based on the job size (that is, it's based on the cost of the underlying contract). The cost of a bond is estimated through a couple of back-of-the-envelope calculations. In general, the cost is approximately three percent (3%) for jobs under $800,000 and then the percentage is lower as the contract amount increases. We work diligently to find the lowest premiums possible in the state of Arkansas. Please call us today at (913) 286-6501. We'll find you the very best rate possible for your maintenance bond or completion bond. Things that can affect this pricing are the perceived risk of the job, the financial position of the entity being bonded, plus other factors. See our Performance Bond Cost page for more.
| Bond Amount Needed | Fee |
| <$800,000 | 2-3% |
| >$800,000<$1,500,00 | 1.5-3% |
| >$1.500,000 | 1-3% |
These rates are for Merit clients, Standard rates are higher
How do I get a Bid Bond in Arkansas?
We make it easy to get a contract bid bond. Just click here to get our Arkansas Bid Bond Application. Fill it out and then email it and the Arkansas bid specs/contract documents to [email protected] or fax to 855-433-4192.
You can also call us at (913) 286-6501. We will review each and every application for surety bid bonds and then submit it to the surety that we believe will provide the best bid bond for your company. We have a great success rate in getting our clients surety bid bonds at the best rates possible.
Unboxing the Arkansas Bid Bond: What You Need to Know
A bid bond in Arkansas serves as a financial assurance that a contractor will enter into a contract and provide the required performance and payment bonds if awarded the project. From our perspective, this bond acts as a safeguard for project owners, ensuring contractors are committed to their bids and won’t withdraw once selected.
Discovering Local Bid Bonds Near You
Finding a bid bond in Arkansas doesn’t have to be complicated. We’ve noticed that local surety companies and agents are often the best starting points, providing tailored advice specific to your project needs. Additionally, online platforms have made the process easier by allowing contractors to access competitive bond options quickly and efficiently.
Identifying Who Needs Bid Bonds in Arkansas
We’ve consistently found that several key entities require bid bonds as part of the project bidding process in Arkansas. These include:
- Government Agencies: Public projects typically require bid bonds to ensure that bidders follow through with their proposals.
- Private Developers: Many private projects also demand bid bonds to mitigate the risk of contractors backing out after the bid.
- Municipalities: Local governments frequently require bid bonds for infrastructure projects to ensure contractors are financially accountable.
We’ve observed that having a bid bond builds trust and is a competitive advantage for contractors bidding on both public and private projects.
We provide bid bonds in each of the following counties:
Arkansas
Ashley
Baxter
Benton
Boone
Bradley
Calhoun
Carroll
Chicot
Clark
Clay
Cleburne
Cleveland
Columbia
Conway
Craighead
Crawford
Crittenden
Cross
Dallas
Desha
Drew
Faulkner
Franklin
Fulton
Garland
Grant
Greene
Hempstead
Hot Spring
Howard
Independence
Izard
Jackson
Jefferson
Johnson
Lafayette
Lawrence
Lee
Lincoln
Little River
Logan
Lonoke
Madison
Marion
Miller
Mississippi
Monroe
Montgomery
Nevada
Newton
Ouachita
Perry
Phillips
Pike
Poinsett
Polk
Pope
Prairie
Pulaski
Randolph
St. Francis
Saline
Scott
Searcy
Sebastian
Sevier
Sharp
Stone
Union
Van Buren
Washington
White
Woodruff
Yell
And Cities:
Little Rock
Fayetteville
Hot Springs
Fort Smith
Bentonville
North Little Rock
Conway
See our California bid bond page here.
More on Surety Bid Bonds https://swiftbonds.com/bid-bond/.
Key Considerations for Navigating Bid Bonds Successfully
What we’ve discovered is that understanding the finer details of bid bonds can help contractors avoid common pitfalls. Some key considerations include:
- Financial Evaluation: In our opinion, having a solid financial foundation will not only increase your chances of securing a bond but also lower costs.
- Choose the Right Surety: We’ve found that working with a reputable surety provider can significantly simplify the bonding process.
- Understand Your Responsibilities: We’ve seen firsthand that knowing the bond’s obligations will help you meet expectations and avoid claims.
Uncovering the Essentials of a Surety Bid Bond
From our perspective, a surety bid bond is a three-party agreement that includes the project owner (obligee), the contractor (principal), and the surety company. We’ve observed that this bond ensures the contractor will adhere to the project terms or face financial consequences, offering security to all parties involved.
How a Surety Bid Bond Works: Explained Step by Step
We’ve been in a position to outline how the process of a surety bid bond unfolds:
- Submitting a Bid: The contractor submits their bid along with a bid bond to the project owner.
- Bond Review: If selected, the contractor is required to enter into the contract and provide additional bonds (such as performance and payment).
- Compensation: Should the contractor fail to comply, the surety compensates the project owner for any financial losses, covering re-bidding expenses.
We’ve learned through doing that this structured process ensures transparency and protects project owners from potential setbacks.
The Journey of Applying for a Surety Bid Bond in Arkansas
We’ve often noticed that the application process for a bid bond in Arkansas involves several critical steps:
- Gather Financial Documents: These include balance sheets, income statements, and cash flow analyses.
- Provide a Record of Past Projects: A contractor’s performance history is essential in determining bond approval.
- Submit a Formal Bond Request: Contractors must submit an official request to their surety provider.
- Credit Check: We’ve consistently observed that a contractor’s creditworthiness is a major factor in the approval process.
Unboxing the Price of a Surety Bid Bond
From our observation, the cost of a bid bond is typically a small percentage of the total bid amount, usually between 1% and 5%. Our experience tells us that contractors with strong financials and a solid track record can secure better rates. We’ve found that investing in financial health can significantly reduce overall bond costs.
Identifying Reasons for Bid Bond Denial
We’ve encountered several reasons why a bid bond application may be denied, including:
- Credit Issues: Poor credit scores have been a common cause for rejection in our dealings with contractors.
- Weak Financials: Inadequate financial resources are another key reason for denial, as sureties are wary of instability.
- Inexperience: We’ve come across instances where contractors with limited experience are denied bonds, especially for large or complex projects.
Concluding Thoughts on Arkansas Bid Bonds
From what we’ve seen, bid bonds are a critical element of the construction landscape in Arkansas. They provide essential protection for project owners while helping contractors secure work. In our view, understanding bid bonds, working with trusted surety providers, and maintaining strong financials are the keys to success. By focusing on these areas, contractors can confidently navigate the bid bond process and seize new business opportunities.
