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 Montana?
A bid bond is one of the types of surety bonds, which guarantees that the bidder will enter into the agreement and complete it according to its terms. It provides assurance to the project owner that the bidder has the ability and wherewithal to finish the job once the bidder is selected after winning the bid. The basic reason is that you need one in order to get the work. However, the bigger question is why are more owners/developers requiring a surety bid bond? The answer is risk. Given the uncertainty of the marketplace, which includes long-term contractors closing their doors, to municipalities filing bankruptcy (or just slow paying), has led to owners being afraid that their contractors will be unable to complete the job. Accordingly, they require a some protection.
Just fill out our bond application here and email it to [email protected] - click here to get our Montana 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 Montana?
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 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 contract bond.
How much do bonds cost in MT?
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 Montana. 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 Montana?
We make it easy to get a contract bid bond. Just click here to get our Montana Bid Bond Application. Fill it out and then email it and the Montana 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 all application for surety bonds and then submit it to the surety that we believe will provide the best bid and P&P bond for your company. We have a very high success rate in getting our clients bid bonds at the best rates possible.
Spearhead the Understanding of Montana Bid Bonds
Montana bid bonds spearhead financial assurance in the construction industry, acting as a safeguard for both contractors and project owners. These bonds ensure that contractors who bid on projects have the financial backing and commitment to fulfill their obligations. A bid bond guarantees that a contractor will enter into a contract and provide the necessary performance bonds if awarded the project. Without a bid bond, owners risk selecting contractors who may not deliver as promised.
Uncover the Core Purpose of Bid Bonds in Montana
We’ve consistently found that bid bonds serve as a financial safety net for project owners, ensuring that contractors don’t abandon the project after securing the contract. From our perspective, bid bonds minimize the financial risk that can arise if a contractor defaults, helping both the owner and the community by ensuring construction projects stay on track. This layer of security is invaluable for maintaining trust in Montana’s construction industry.
Empower Contractors by Boosting Financial Credibility
Bid bonds empower contractors by enhancing their financial credibility. Contractors who are bonded demonstrate their financial stability and commitment to seeing the project through. We’ve come to appreciate that a well-bonded contractor is viewed as trustworthy and reliable, helping them stand out from competitors in Montana’s increasingly competitive construction landscape. Bid bonds, in our opinion, allow contractors to build a reputation for professionalism, which can lead to long-term business growth.
Strategize Your Approach to Finding Bid Bonds in Montana
Finding a reliable bid bond provider requires strategy, especially in a specific market like Montana. In our observation, choosing the right surety company can make a significant difference in securing competitive rates and navigating state-specific regulations. When searching for a provider, contractors should aim to form relationships with bond companies that understand Montana’s local laws and industry standards.
Mobilize Local Resources to Locate Surety Providers
We’ve often noticed that contractors can mobilize local resources, such as Montana construction associations, to identify reputable bond providers. Based on our experience, collaborating with local agencies and seeking recommendations from peers is an effective way to navigate the bonding process. Local providers understand the regional requirements and can offer guidance that aligns with Montana’s regulatory environment.
Leverage National Networks for Competitive Rates
We’ve come across instances where contractors successfully leveraged national surety networks to maximize their chances of securing better rates. In our experience, national surety companies often offer more competitive pricing than smaller local providers and provide access to a broader range of bonding options. For Montana contractors bidding on larger projects, partnering with national sureties ensures they remain competitive while meeting state-specific requirements.
Leverage Bid Bonds to Benefit Project Owners and Contractors
Bid bonds are a powerful tool that can be leveraged by both project owners and contractors in Montana. We’ve seen firsthand that these bonds create an environment of trust and reliability, providing financial protection for owners while empowering contractors to demonstrate their reliability. Bid bonds are crucial for ensuring that project timelines remain intact and that contractors fulfill their obligations.
Lead the Charge in Establishing Contractor Credibility
Contractors who obtain bid bonds lead the charge in enhancing their credibility. We’ve consistently observed that project owners in Montana prefer working with bonded contractors, as it demonstrates a contractor’s financial stability and reliability. From our perspective, bid bonds serve as a clear signal of professionalism, helping contractors secure projects they might otherwise miss. For contractors looking to grow, being bonded is an essential step toward dominating the competitive bidding process.
Dominate the Bidding Process as a Project Owner
For project owners, bid bonds are a strategic tool for dominating the bidding process. We’ve had firsthand experience with project owners who use bid bonds to mitigate the risk of contractor defaults, ensuring that their projects stay on schedule. From our perspective, bid bonds provide owners with peace of mind, knowing they are protected if the chosen contractor fails to execute the contract. This security allows owners to focus on managing the project without the financial worry of contractor non-performance.
We provide surety bid bonds in each of the following counties:
Beaverhead
Big Horn
Blaine
Broadwater
Carbon
Carter
Cascade
Chouteau
Custer
Daniels
Dawson
Deer Lodge
Fallon
Fergus
Flathead
Gallatin
Garfield
Glacier
Golden Valley
Granite
Hill
Jefferson
Judith Basin
Lake
Lewis And Clark
Liberty
Lincoln
Madison
McCone
Meagher
Mineral
Missoula
Musselshell
Park
Petroleum
Phillips
Pondera
Powder River
Powell
Prairie
Ravalli
Richland
Roosevelt
Rosebud
Sanders
Sheridan
Silver Bow
Stillwater
Sweet Grass
Teton
Toole
Treasure
Valley
Wheatland
Wibaux
Yellowstone
Yellowstone National Park
And Cities:
Billings
Missoula
Bozeman
Helena
Great Falls
Kalispell
Butte
Whitefish
Livingston
Havre
See our Nebraska Bid Bond page here.
More on Bid Bonds https://swiftbonds.com/bid-bond/.
Exploring the Concept of Surety Bid Bonds
What we’ve experienced is that a surety bid bond works as a promise between three parties: the contractor, the project owner, and the surety company. The bond ensures that if the contractor defaults, the surety will step in to either provide the project owner with financial compensation or find another contractor to complete the job. We’ve come to appreciate the reliability this adds to large-scale construction projects across Montana, reducing financial risks for all parties involved.
Breaking Down the Bid Bond Process
We’ve consistently found that the bid bond process in Montana is straightforward yet vital. Contractors submit their bid proposals, and if selected, their bid bond kicks in to ensure they will move forward with the project. From what we’ve seen, the bond offers financial protection by covering a percentage of the total bid amount, typically 5-10%. This safeguard ensures contractors do not walk away after being awarded a contract, which could otherwise lead to costly delays.
Revamp Your Approach to Applying for Bid Bonds in Montana
Before diving into the bid bond process, it’s crucial to revamp your mindset about what is required and how to best prepare. We’ve often found that contractors who take the time to understand the requirements and gather the necessary documents experience smoother applications. The more organized and prepared a contractor is, the better their chances of being approved for a bid bond.
Execute a Comprehensive Preparation Plan
We’ve consistently found that contractors who execute a comprehensive preparation plan have a higher success rate when applying for bid bonds. From our perspective, ensuring that all financial documents are in order—such as credit reports, project history, and financial statements—reduces the likelihood of delays or denials. Working with a knowledgeable surety provider can also help ensure that your bid bond application meets Montana’s specific requirements.
Refocus on Creditworthiness and Financial Standing
A contractor’s creditworthiness plays a significant role in obtaining a bid bond, and we’ve personally witnessed how it can be a make-or-break factor. From our perspective, contractors should refocus their efforts on improving their credit score and financial standing before applying for a bid bond. This preparation not only increases the likelihood of approval but also helps secure more favorable terms and rates. Maintaining good financial health is crucial for long-term success in Montana’s construction industry, as it allows contractors to bid on larger and more lucrative projects.
The Price of a Surety Bid Bond in Montana
Based on our experience, the price of a bid bond in Montana is typically a small percentage of the project’s total bid amount, often between 1% and 5%. However, we’ve found through experience that the final cost is influenced by factors such as the contractor’s financial standing, the size of the project, and the level of risk involved. While the upfront cost is minimal, the benefits in terms of securing larger projects and protecting against default far outweigh the expenses.
Can You Be Denied a Bid Bond in Montana?
We’ve personally encountered situations where contractors were denied bid bonds due to financial instability, poor credit history, or lack of experience. In our opinion, the best way to avoid this outcome is by working closely with a surety provider early on. Contractors who maintain clean financial records, have prior successful projects, and present a professional application are far less likely to face denial.
Final Thoughts: Ensure Success with Montana Bid Bonds
We’ve realized through our work that bid bonds play an indispensable role in Montana’s construction industry. They protect project owners and ensure contractors are serious and financially capable of completing their obligations. For contractors, securing a bid bond opens doors to larger projects and provides credibility. From our own observations, the key to success lies in selecting the right surety provider, preparing a solid application, and understanding the bond process from start to finish. With these strategies in place, both contractors and project owners can navigate Montana’s bidding landscape with confidence.
