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 New York?
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. The bid bond provides assurance to the project owner that the bidder has the ability and wherewithal to complete the job once you are selected after winning the bidding process. The simple reason is that you need one so that you get the job. However, the larger 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 going bankrupt, 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 [email protected] - click here to get our New York 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 New York?
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 this 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 underlying contract.
How much do bonds cost in NY?
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 New York. 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 New York?
We make it easy to get a contract bid bond. Just click here to get our New York Bid Bond Application. Fill it out and then email it and the New York bid specs/contract documents to [email protected] or fax to 855-433-4192.
You can also call us at (913) 286-6501. We review all application for bid bonds and then submit it to the surety that we believe will provide the best surety bid bond for your contract. We have a great success rate in getting our clients surety bid bonds at the best rates possible.
Ignite Your Understanding of New York Bid Bonds
Bid bonds are essential components of the construction and contracting landscape in New York. These bonds act as a financial safeguard, ensuring that contractors can meet their obligations if they win a bid on a public or private project. From what we’ve observed, the competitive nature of New York’s construction industry amplifies the need for bid bonds, making them an indispensable tool for managing financial risks. Let’s explore the critical elements of bid bonds in New York.
Rejuvenate Your Knowledge of Bid Bonds in New York
In our experience, a New York bid bond is a type of surety bond designed to protect the project owner if a contractor fails to honor their bid. When a contractor submits a bid for a project, they are often required to provide a bid bond. If the contractor is awarded the contract but does not take it, the owner is compensated for their loss. We’ve noticed that these bonds are a mandatory requirement for public works projects across New York, helping to foster trust and accountability in the bidding process.
Unlock the Process of Finding the Right Bid Bond Provider
Finding the right bid bond provider is a critical step for contractors in New York. We’ve consistently found that selecting a reliable provider can make all the difference in the bidding process. Proximity and local expertise are important considerations when seeking a bid bond provider near you. From our perspective, working with a provider who understands New York’s regulations can streamline the process.
Streamline Your Search for a Bid Bond Provider
We’ve often noticed that choosing the right provider involves more than just price comparison. Key factors such as the provider’s reputation, their experience with local projects, and their customer service record are critical in the decision-making process. By evaluating these factors, contractors can ensure they are working with a trusted partner.
Important Factors to Consider When Choosing a Bid Bond Provider
We’ve consistently observed that finding the right fit involves looking at more than just the bond’s cost. You’ll need to consider the provider’s coverage limits, turnaround time, and the level of customer support they offer. In our experience, providers with strong customer service and experience in the local market tend to offer the best outcomes for contractors.
Who Benefits from a Bid Bond in New York?
We’ve come to realize that bid bonds serve to protect multiple stakeholders in the construction industry. The project owner, or obligee, is safeguarded against financial loss if the contractor (or principal) backs out of the agreement after winning the bid. Contractors, on the other hand, gain credibility by demonstrating their commitment to seeing the project through. We’ve consistently found that these bonds create an environment of trust and accountability in New York’s competitive construction market.
We provide bid bonds in each of the following counties:
Albany
Allegany
Bronx
Broome
Cattaraugus
Cayuga
Chautauqua
Chemung
Chenango
Clinton
Columbia
Cortland
Delaware
Dutchess
Erie
Essex
Franklin
Fulton
Genesee
Greene
Hamilton
Herkimer
Jefferson
Kings
Lewis
Livingston
Madison
Monroe
Montgomery
Nassau
New York City
Niagara
Oneida
Onondaga
Ontario
Orange
Orleans
Oswego
Otsego
Putnam
Queens
Rensselaer
Richmond
Rockland
St. Lawrence
Saratoga
Schenectady
Schoharie
Schuyler
Seneca
Steuben
Suffolk
Sullivan
Tioga
Tompkins
Ulster
Warren
Washington
Wayne
Westchester
Wyoming
Yates
And Cities:
New York
Buffalo
Rochester
Albany
Syracuse
Yonkers
Ithaca
Utica
White Plains
Binghamton
Manhattan
Bronx
Queens
Brooklyn
Staten Island
See our North Carolina Bid Bond page here.
More on Surety Bid Bonds https://swiftbonds.com/bid-bond/.
Practical Tips for Evaluating Bid Bonds
Based on our extensive experience in the construction industry, we’ve gathered several tips to keep in mind when considering bid bonds:
- Start the Process Early – We’ve learned that starting your bid bond application early in the bidding process helps avoid any last-minute issues that may arise.
- Conduct Thorough Research – We’ve always found that not all providers offer the same level of service or expertise. Choosing a provider who understands New York’s unique bond requirements can save you time and hassle.
- Understand the Terms Completely – Our experience has taught us that reading the fine print of a bid bond contract can help you avoid potential complications down the line.
- Maintain Strong Financial Health – We’ve realized that maintaining a solid financial standing not only helps with your approval odds but can also lead to more favorable rates.
- Bid on Multiple Projects – We’ve consistently found that having bid bonds for several projects increases your chances of securing work in a competitive market like New York.
Illuminate the Concept of a Surety Bid Bond
In our understanding, a surety bid bond is an agreement between three parties: the contractor (principal), the project owner (obligee), and the surety company. The surety provides a financial guarantee that the contractor will fulfill their obligations. We’ve often found that these bonds help protect project owners against the financial risks of a contractor failing to honor their bid. This assurance gives owners peace of mind that their projects will not face undue delays or cost increases.
How a Surety Bid Bond Works in Practice
We’ve personally observed how surety bid bonds work in real-world scenarios. If a contractor wins the bid but fails to proceed, the surety company steps in to compensate the project owner for the difference between the contractor’s bid and the next highest bid. From our own observations, this process ensures accountability and financial protection for project owners, allowing the construction process to move forward with minimal disruption.
Energize Your Application for a Surety Bid Bond in New York
In our practice, we’ve consistently observed that applying for a surety bid bond in New York requires thorough preparation. Contractors must provide detailed financial information, including balance sheets, income statements, and references, to demonstrate their ability to complete the project if awarded the bid. The surety company evaluates the contractor’s financial health and past performance to determine their risk level.
Application Requirements for a Surety Bid Bond
We’ve come across various application requirements that contractors must fulfill. These often include submitting financial documents such as balance sheets, cash flow statements, and tax returns. From our perspective, ensuring these documents are accurate and up-to-date is crucial for a smooth approval process.
Navigating the Application Process in New York
We’ve learned through experience that navigating the surety bid bond application process in New York can be straightforward with the right preparation. Submitting a comprehensive and accurate application improves the likelihood of success. Working closely with your surety provider and staying informed about state-specific regulations are key to a successful application.
Recalibrate Your Budget with the Cost of a Surety Bid Bond
In our observation, the cost of a surety bid bond typically falls between 1% to 5% of the total bid amount. We’ve found that the contractor’s financial standing, project size, and the surety’s evaluation of risk all contribute to the final cost. By understanding these factors, contractors can more effectively budget for the bond and the project as a whole.
Empower Your Application: Avoiding Bid Bond Denial
We’ve encountered many situations where contractors face bid bond denials due to inadequate financial documentation or poor credit histories. In our professional dealings with surety providers, we’ve come to understand that maintaining strong financial health and submitting complete documentation are vital to ensuring a successful application.
Bolster Your Chances of Approval with These Facts
We’ve learned that avoiding bid bond denial often comes down to preparation and organization. Keeping your financial records in order, providing thorough documentation, and working with a knowledgeable surety provider significantly increase the likelihood of approval. From our experience, it’s better to invest time upfront than risk a denial that could hinder your bidding opportunities.
Concluding Thoughts on New York Bid Bonds
We’ve gained considerable insight into how essential bid bonds are in New York’s construction industry. These bonds protect project owners from financial loss while enhancing contractors’ credibility in the bidding process. From our experience, understanding the application process, maintaining solid financial health, and choosing the right bond provider are key elements to success. By following these guidelines, contractors can effectively navigate New York’s competitive bidding landscape and secure their next project with confidence.
