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 gary@swiftbonds.com.
- Be sure to include the RFQ/ITB (bid specs from the obligee).
What is a Bid Bond in Colorado?
A bid bond is a type of surety bond, that guarantees that the bidder will accept the project and complete the contract according to its terms. It provides assurance to the project owner that the bidder has the knowhow and wherewithal to complete the job once the bidder is selected after winning the bid. The simple reason is that you need one to get the job. But the bigger question is why are more owners/developers requiring a bid bond? The simply explanation is risk. Given the uncertainty of the marketplace, which includes experienced contractors going out of business, to municipalities filing bankruptcy (or just slow paying), has led to owners being afraid that their contractors will be unable finish the work. Accordingly, they require a some protection.
Just fill out our bond application here and email it to gary@swiftbonds.com - click here to get our Colorado 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 (5%) or ten (10%) percent, is forfeited if you don’t accept the job).
How much does a Bid Bond Cost in Colorado?
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 P&P bond if you get the job. The cost of a 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 CO?
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 Colorado. 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 Colorado?
We make it easy to get a contract bid bond. Just click here to get our Colorado Bid Bond Application. Fill it out and then email it and the Colorado bid specs/contract documents to gary@swiftbonds.com or fax to 855-433-4192.
You can also call us at (913) 286-6501. We fully review each application for 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 bid bonds at the best rates possible.
Uncovering the Truth About Bid Bonds in Colorado: An In-Depth Look
In our experience, Colorado bid bonds play a key role in ensuring the success of construction projects by safeguarding the interests of all parties involved. This in-depth overview reveals the truth about how bid bonds work and why they are crucial. We’ve consistently found that these bonds are required for public projects to protect the project owner from financial risk if a contractor fails to honor their bid.
Your Journey to Finding a Bid Bond Near You in Colorado
We’ve learned that embarking on the journey to find the right bid bond provider in Colorado is easier with the right resources. Through our own efforts, we’ve uncovered that many surety companies and brokers across the state offer this service. Our experience tells us that working with professionals who understand Colorado’s regulatory environment is key to obtaining a reliable bid bond.
Who Gets the Bid Bond in Colorado? Key Players Revealed
In our dealings with bid bonds, we’ve noticed that several key parties benefit from this financial tool in Colorado:
- Project Owners – Project owners benefit from the bond, ensuring that the contractor will follow through on their bid or compensate the owner if they don’t.
- Contractors – We’ve uncovered that contractors use bid bonds to demonstrate their financial stability and reliability, helping them secure contracts.
- Surety Companies – Surety companies, in our observation, provide a financial guarantee and take on the risk if the contractor defaults.
We provide bid bonds in each of the following counties:
Conejos
Costilla
Crowley
Custer
Delta
Denver
Dolores
Douglas
Eagle
Elbert
El Paso
Fremont
Garfield
Gilpin
Grand
Gunnison
Hinsdale
Huerfano
Jackson
Jefferson
Kiowa
Kit Carson
Lake
La Plata
Larimer
Las Animas
Lincoln
Logan
Mesa
Mineral
Moffat
Montezuma
Montrose
Morgan
Otero
Ouray
Park
Phillips
Pitkin
Prowers
Pueblo
Rio Blanco
Rio Grande
Routt
Saguache
San Juan
San Miguel
Sedgwick
Summit
Teller
Washington
Weld
Yuma
And Cities:
Denver
Colorado Springs
Boulder
Aspen
Fort Collins
Aurora
Steamboat Springs
Littleton
Grand Junction
Pueblo
Vail
See our Connecticut bid bond page here.
More on Surety Bid Bonds https://swiftbonds.com/bid-bond/.
Practical Advice: Your Key to Success with Bid Bonds in Colorado
Based on our experience, there are several key factors to consider when applying for a bid bond in Colorado. Here’s a list of practical advice to guide your journey:
- Ensure Strong Financials: We’ve uncovered that having solid financial statements is key to securing a bid bond.
- Choose a Reputable Surety: In our view, working with a trusted surety company is vital to avoid delays or denials.
- Understand the Contract: We’ve learned that reviewing the contract in detail will reveal specific bond requirements.
- Prepare Thorough Documentation: In our observation, complete and accurate documentation speeds up the application process.
The Key Facts Behind Surety Bid Bonds: What You Need to Know
We’ve found through experience that a surety bid bond is more than just a piece of paper—it’s a legal guarantee. It holds the contractor accountable to their bid and ensures the project owner has a financial safety net. The key fact is that the surety bond builds trust between the contractor and the project owner, facilitating smoother contracts in Colorado’s construction industry.
How Bid Bonds Work in Colorado: Key Steps Unveiled
We’ve come to understand that bid bonds in Colorado work in a systematic way. Below is a list of the key steps involved:
- Submitting the Bid Bond: Contractors include the bond with their bid as part of the application process.
- Surety Evaluation: The surety assesses the contractor’s ability to fulfill the project.
- Bond Issuance: If approved, the bond is issued to guarantee the contractor’s bid.
- Compensation for Default: We’ve often found that in the case of default, the surety compensates the project owner for financial losses.
The Application Process for Surety Bid Bonds in Colorado: An In-Depth Journey
We’ve been involved in the application process for bid bonds many times, and our experience tells us there are several key steps to follow:
- Complete an Application: Provide financial records, project details, and personal references.
- Partner with a Licensed Surety: In our view, working with a surety licensed in Colorado is essential for compliance.
- Submit All Required Documents: We’ve discovered through trial and error that submitting complete paperwork will reveal fewer complications in the process.
The Price of a Surety Bid Bond in Colorado: What You Need to Know
In our professional life, we’ve consistently observed that the cost of a surety bid bond in Colorado varies depending on the contract value and the contractor’s financial standing. We’ve come to appreciate that the price typically ranges between 1% and 5% of the total project cost. Our advice is to maintain strong financial health to negotiate a better rate.
Is There a Chance of Being Denied a Bid Bond? Uncovering the Key Facts
From our own observations, contractors can be denied a bid bond for several reasons. Here’s a list of the most common reasons:
- Poor Credit History: We’ve often found that contractors with low credit scores may be denied.
- Incomplete Documentation: We’ve learned that missing documents can slow down the approval process or result in denial.
- Lack of Experience: In our dealings with surety companies, we’ve noticed that contractors without experience in similar projects may struggle to get approval.
- Weak Financial Position: We’ve personally witnessed contractors being denied because of insufficient working capital or financial instability.
Concluding Thoughts: The Journey to Securing a Bid Bond in Colorado
From what we’ve seen, bid bonds are a key component of Colorado’s construction projects, offering protection to both contractors and project owners. We’ve consistently observed that understanding the process, preparing thoroughly, and working with trusted surety companies are critical to securing a bid bond. In our opinion, a well-prepared contractor is more likely to succeed in the competitive bidding landscape of Colorado.