What is a bid bond bank guarantee?
A bid bond bank guarantee is another name for a bid bond. There are times that a bank guarantee is required for a bid. The bank guarantee portion is the part that requires a bidder to get a bond that ensures that they will take the job if they win the bid.
Typically a bid bond is 5-10% of the bid amount. What that means is that if the bidder wins the bid, but decides not to take the job, then they will have to pay a penalty in that amount just to walk away from the bid.