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 Michigan?
A bid bond is one of the types of surety bonds, that guarantees that the bidder will enter into 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 you are selected after winning the bidding process. The basic reason is that you need one to get the contract. However, the bigger question is why are more owners/developers requiring a surety bid bond? The simple answer is risk. Given the uncertainty of the marketplace, which includes long-time 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 to complete the job. Thus, they require a some protection.
Just fill out our bond application here and email it to gary@swiftbonds.com - click here to get our Michigan 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 5% or 10%, is forfeited if you don’t accept the job).
How much does a Bid Bond Cost in Michigan?
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 bid 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 MI?
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 Michigan. 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.
| 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. See our Performance Bond Cost page for more.
How do I get a Bid Bond in Michigan?
We make it easy to get a contract bid bond. Just click here to get our Michigan Bid Bond Application. Fill it out and then email it and the Michigan bid specs/contract documents to gary@swiftbonds.com or fax to 855-433-4192.
You can also call us at (913) 286-6501. We review all application for bid and P&P 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 very best rates possible.
Elevate Your Understanding of Michigan Bid Bonds
In Michigan’s competitive construction industry, bid bonds play a pivotal role in ensuring both contractors and project owners are protected during the bidding process. From our perspective, bid bonds are not just a legal requirement but an essential safety net that promotes trust and accountability between all parties involved. Let’s dive into the details of bid bonds and their relevance in Michigan.
Why Michigan Bid Bonds Matter
In our view, bid bonds create a structured bidding process that benefits both contractors and owners, preventing unnecessary financial risks and promoting fairness.
Lead Your Search for Bid Bonds Near You in Michigan
Finding the right bid bond provider is essential for contractors in Michigan. What we’ve experienced is that many contractors struggle to locate reliable surety bond companies. The good news is that you can start by:
- Contacting local insurance agencies that specialize in surety bonds.
- Searching for state-approved surety providers online.
- Reaching out to professional contractor associations for recommendations.
- Consulting with financial advisors who have personally dealt with bid bonds in the construction industry.
These steps should help you secure the bid bond you need for your next project in Michigan.
Maximize Your Resources When Looking for Providers
We’ve often noticed that building relationships with local agencies can significantly boost your chances of finding a provider who understands Michigan’s regulations and can assist you through the process smoothly.
Strengthen Your Knowledge of Who Benefits from a Michigan Bid Bond
A bid bond primarily benefits the project owner. We’ve come to believe that it assures the owner that the winning contractor will honor their bid and complete the project at the agreed-upon price. Should the contractor fail to follow through, the surety company compensates the owner, protecting them from financial loss. In our opinion, this is a critical layer of protection for both public and private projects.
Empower Your Understanding of Who Can Get Bid Bonds and Why
From our perspective, bid bonds are not limited to just one group of professionals. Many entities within the construction industry, as well as related fields, can benefit from securing a bid bond. Here's a breakdown of who can get bid bonds and why:
- General Contractors
We’ve consistently found that general contractors are the most common recipients of bid bonds. They need these bonds to ensure that they follow through on their project commitments if their bid is accepted. - Subcontractors
We’ve often worked with subcontractors who are required to obtain bid bonds when they are part of large projects. This ensures that the subcontractor will fulfill their portion of the project in line with the agreed terms. - Construction Management Firms
Our experience tells us that construction management firms involved in the bidding process may need bid bonds to demonstrate their financial stability and reliability when managing projects. - Government Contractors
We’ve observed that contractors bidding on government projects, at both the state and federal levels, typically need bid bonds. Government entities require these bonds to protect taxpayer dollars and ensure project completion. - Specialty Trade Contractors
In our dealings with specialty trade contractors, such as those in plumbing, electrical, or HVAC, we’ve noticed that they are often required to post bid bonds, especially when working on commercial or large-scale residential projects.
These different entities benefit from bid bonds by proving their commitment and financial reliability, giving project owners peace of mind.
We provide bid bonds in each of the following counties:
Alcona
Alger
Allegan
Alpena
Antrim
Arenac
Baraga
Barry
Bay
Benzie
Berrien
Branch
Calhoun
Cass
Charlevoix
Cheboygan
Chippewa
Clare
Clinton
Crawford
Delta
Dickinson
Eaton
Emmet
Genesee
Gladwin
Gogebic
Grand Traverse
Gratiot
Hillsdale
Houghton
Huron
Ingham
Ionia
Iosco
Iron
Isabella
Jackson
Kalamazoo
Kalkaska
Kent
Keweenaw
Lake
Lapeer
Leelanau
Lenawee
Livingston
Luce
Mackinac
Macomb
Manistee
Marquette
Mason
Mecosta
Menominee
Midland
Missaukee
Monroe
Montcalm
Montmorency
Muskegon
Newaygo
Oakland
Oceana
Ogemaw
Ontonagon
Osceola
Oscoda
Otsego
Ottawa
Presque Isle
Roscommon
Saginaw
St. Clair
St. Joseph
Sanilac
Schoolcraft
Shiawassee
Tuscola
Van Buren
Washtenaw
Wayne
Wexford
And Cities:
Detroit
Grand Rapids
Lansing
Ann Arbor
Flint
Kalamazoo
Saginaw
Traverse City
Dearborn
Livonia
See our Minnesota Bid Bond page here.
More on Surety Bid Bonds https://swiftbonds.com/bid-bond/.
Boost Your Strategy with Practical Tips for Handling Bid Bonds
Based on our experience, here are some practical tips when considering bid bonds:
- Know Your Project: Ensure you fully understand the project requirements before bidding.
- Work With Reputable Sureties: Always choose a reliable and well-established surety company.
- Prepare Documentation: Ensure all financial documents are in order to prevent any issues during the bond application process.
- Stay Informed: Regularly update yourself on Michigan-specific bonding regulations.
Following these tips can help streamline the process and reduce the risk of complications.
Formulate Your Understanding of Surety Bid Bonds
What we’ve observed is that many contractors confuse bid bonds with other types of surety bonds. A surety bid bond is a guarantee provided by a third party (the surety) that the contractor will honor their bid if selected. We’ve found that this bond gives project owners the confidence to select a contractor without the fear of financial risks should the contractor fail to perform.
Drive the Process of How Surety Bid Bonds Work in Michigan
We’ve consistently observed that the bid bond process in Michigan works smoothly if all parties involved understand their roles. The contractor submits a bid for a project, and a surety company backs their commitment by issuing a bid bond. If the contractor refuses to proceed with the project, the surety company compensates the project owner, typically for the difference between the defaulting contractor’s bid and the next lowest bid.
Execute the Application Process for Bid Bonds in Michigan
In our dealings with bid bonds, we’ve noticed that the application process can be straightforward if approached correctly. Here's a step-by-step guide:
- Prequalify with a Surety Company: Start by finding a reputable surety company that is licensed in Michigan.
- Submit Financial Documentation: Provide the necessary financial records, including balance sheets and income statements.
- Complete the Application: Fill out the bid bond application form with all required details about your project.
- Pay the Premium: Depending on the size of the bond, you’ll need to pay a premium, usually a small percentage of the bond amount.
- Receive the Bond: Once approved, the surety will issue your bid bond, and you can submit it with your project bid.
Ignite Your Application Strategy with Preparation
We’ve found that thoroughly preparing your financials and choosing a strong surety company will give you a competitive edge and significantly speed up the application process.
Boost Your Financial Planning with Knowledge of Surety Bid Bond Costs
We’ve found through experience that the cost of a bid bond in Michigan usually ranges between 1% and 3% of the total bid amount. However, this percentage can vary based on the contractor’s financial history, the size of the project, and the surety company’s assessment of risk.
Pivot to Success by Avoiding Bid Bond Application Denial
From what we’ve seen, there are a few reasons why bid bond applications may be denied, such as:
- Poor Financial History: Sureties are reluctant to approve bonds for contractors with poor credit scores or financial instability.
- Inexperience: Contractors without a proven track record may struggle to secure bonds.
- Incomplete Documentation: Missing or incorrect documentation can delay or prevent approval.
Strengthen Your Position by Avoiding Common Pitfalls
We’ve often noticed that contractors who prepare thoroughly and maintain strong financial records rarely face rejection. We’ve come to appreciate the importance of being proactive and organized during the bid bond application process.
Unfold Concluding Thoughts on Michigan Bid Bonds
We’ve learned over the years that bid bonds are essential for any contractor looking to work on significant projects in Michigan. They offer peace of mind to project owners and a layer of credibility to contractors. Whether you're new to the process or looking to enhance your bonding strategy, understanding the ins and outs of Michigan bid bonds will undoubtedly lead to more successful project bids.
Contact us for the bid 4 Michigan.
