You can now get a Bid Bond (almost) instantly. For Bids under $100,000, click here Bid Bond Application - Near Instant Approval

For all bids greater than $100,000, get our Express Application form:

Express Application (click to download form)

  1. Complete the form and email to [email protected]
  2. Be sure to include the RFQ/ITB (bid specs from the obligee).

What is a Bid Bond in Ohio?

A bid bond is one of the types of surety bonds, that guarantees that the bidder will accept the project and complete the agreement according to its terms. The bid bond provides assurance to the project owner that the bidder has the expertise and capability to finish the job once the bidder is selected after winning the bid. The basic reason is that you need one so that you get the contract. But the larger question is why are more owners/developers requiring a bid bond in the first place? The simple answer 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 complete the work. Thus, they require a some protection.

Just fill out our bond application here and email it to [email protected]click here to get our Ohio Bid Bond Application

What's a bid bond? - This is an infographic image explaining what is a bid bond with a guy in color blue dress, two guys talking in a table, a guy explaining on multi colored background.

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).

Bid bonds - This image shows a word bid bond in a white colored background.

How much does a Bid Bond Cost in Ohio?

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 win the bid. 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 OH?

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 Ohio. 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 Ohio?How do I get a Bid Bond in Ohio - This image shows a map of Ohio in a white colored with a colored dark blue as background.

We make it easy to get a contract bid bond.  Just click here to get our Ohio Bid Bond Application.  Fill it out and then email it and the Ohio 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 bid and P&P bond for your contract. We have a very high success rate in getting our clients bid bonds at the best rates possible.

Graphic of Ohio state map with the text 'What is Ohio Bid Bonds?' - Introduction to the concept and importance of bid bonds in Ohio.

Unveiling the Importance of Ohio Bid Bonds

In our view, an Ohio bid bond serves as a financial guarantee that protects project owners by ensuring that the contractor who submits the bid will honor their obligations if selected. Specifically, this bond ensures that the contractor will enter into a contract and provide any required performance and payment bonds upon winning the bid. Without a bid bond, there’s a risk that a contractor could back out or fail to follow through, leaving the project owner to deal with financial losses and delays. Bid bonds matter because they keep the bidding process competitive, accountable, and transparent, safeguarding project owners and promoting fair competition.

Exploring Why Bid Bonds Are So Important

We’ve come to believe that bid bonds are essential because they create trust in the bidding process. They reassure project owners that contractors are serious and financially stable enough to complete the project if awarded. Bid bonds also allow project owners to claim compensation if a contractor defaults, preventing costly disruptions. From our perspective, they are a critical part of making public and private projects run smoothly in Ohio’s construction industry.

Streamlining Your Search for a Reliable Bid Bond Provider

Map of Ohio with a location marker labeled 'Ohio Bid Bonds' - Finding reliable bid bond providers near you in Ohio.

In our professional experience, finding a bid bond provider in Ohio requires careful consideration of several factors. First, look for an established provider with a strong reputation. We’ve noticed that many contractors benefit from working with providers who have a deep understanding of Ohio’s legal requirements for bid bonds. Things to consider include the provider’s responsiveness, customer service quality, and ability to tailor their services to the specific needs of your industry.

Aligning Important Considerations When Finding a Bid Bond

We’ve personally witnessed how beneficial it is to use local resources, such as Ohio insurance agents or bond companies, to simplify the process of obtaining a bond. The search often begins with recommendations, online directories, or contacting industry associations. Ensure the provider you choose offers competitive rates and can deliver bid bonds promptly, as time is often critical in the bidding process.

Discovered: Who Receives Bid Bonds in Ohio?

We’ve consistently found that the Ohio bid bond process involves three primary parties:

  1. Principal: This is the contractor or company bidding on the project. The principal is responsible for fulfilling the obligations set forth in the bond.
  2. Obligee: The project owner, typically a government entity or private developer. The obligee requires the bond to ensure that if the contractor wins the bid, they will honor their contractual commitments.
  3. Surety: The bond provider, usually an insurance or bonding company. The surety guarantees payment if the contractor fails to meet their obligations under the bid bond.

These parties work together to ensure the success of the bidding process, providing financial security and peace of mind to project owners in Ohio.

We provide bid bonds in each of the following counties:

Adams
Allen
Ashland
Ashtabula
Athens
Auglaize
Belmont
Brown
Butler
Carroll
Champaign
Clark
Clermont
Clinton
Columbiana
Coshocton
Crawford
Cuyahoga
Darke
Defiance
Delaware
Erie
Fairfield
Fayette
Franklin
Fulton
Gallia
Geauga
Greene
Guernsey
Hamilton
Hancock
Hardin
Harrison
Henry
Highland
Hocking
Holmes
Huron
Jackson
Jefferson
Knox
Lake
Lawrence
Licking
Logan
Lorain
Lucas
Madison
Mahoning
Marion
Medina
Meigs
Mercer
Miami
Monroe
Montgomery
Morgan
Morrow
Muskingum
Noble
Ottawa
Paulding
Perry
Pickaway
Pike
Portage
Preble
Putnam
Richland
Ross
Sandusky
Scioto
Seneca
Shelby
Stark
Summit
Trumbull
Tuscarawas
Union
Van Wert
Vinton
Warren
Washington
Wayne
Williams
Wood
Wyandot

And Cities:
Columbus
Cleveland
Cincinnati
Dayton
Toledo
Akron
Youngstown
Findlay
Zanesville
Westerville

See our Oklahoma Bid Bond page here.

More on Bid Bonds https://swiftbonds.com/bid-bond/.

Learn more about the state of Ohio bid.

Refine Your Approach: Practical Advice for Ohio Bid Bonds

  • Understand Local Requirements: From our experience, different Ohio municipalities may have varying rules for bid bonds. Ensure you're familiar with local regulations before submitting your bid.
  • Work with a Reputable Surety: Based on our observation, partnering with a well-established surety company reduces the risk of delays and complications in obtaining your bond.
  • Prepare Financial Documentation: We’ve learned that thorough financial documentation, including credit reports and financial statements, can expedite the approval process.
  • Consult a Professional: We’ve come across many cases where seeking expert advice from bond professionals has saved contractors time and money.

Unbox the Essence of a Surety Bid Bond

In our view, a surety bid bond is a financial guarantee provided by a bonding company, ensuring that if a contractor is awarded a project, they will enter into a contract and provide the necessary performance and payment bonds. This type of bond is a key part of maintaining trust in Ohio’s construction bidding process.

Illustration of a woman reading with the Ohio State Capitol in the background, asking 'How to Get Bid Bonds?' - Guiding contractors through the process of securing bid bonds in Ohio.

Understanding How a Surety Bid Bond Works: Key Steps Explained

  • Bid Submission: The principal submits a bid for a project and includes a bid bond.
  • Contract Award: If the principal wins the bid, they are expected to enter into the contract and provide the necessary bonds.
  • Failure to Perform: If the principal fails to honor the bid, the surety compensates the obligee up to the bond amount, ensuring the project can still move forward.
  • Surety Recourse: The surety will seek repayment from the principal for any claims paid out on their behalf.

A Step-by-Step Guide to Applying for a Surety Bid Bond in Ohio

We’ve discovered through experience that the application process for a surety bid bond in Ohio involves several essential steps:

Learning the Requirements for Bid Bond Applications in Ohio

Applicants typically need to provide financial statements, proof of experience, and a solid credit history. From our dealings with contractors, a strong financial background increases the likelihood of approval.

A Journey Through the Step-by-Step Process for Applying for a Bid Bond

The contractor submits the required documents to the bond provider. The surety assesses the contractor’s financial health and experience before issuing the bond. We’ve learned that timely submission of all required paperwork can significantly speed up the approval process.

Unveiling the Price of a Surety Bid Bond

We’ve found that the price of a surety bid bond in Ohio typically ranges from 1% to 5% of the total bid amount. However, contractors with excellent credit and financial stability may secure lower rates. In our opinion, comparing quotes from multiple surety providers is the best way to ensure you’re getting a competitive rate.

Facing the Challenge: Can You Be Denied a Surety Bid Bond?

Yes, it is possible to be denied a bid bond. We’ve encountered situations where contractors with poor credit, insufficient experience, or unstable financials have been turned down. If this happens, don’t be discouraged. In our view, improving financial documentation and working closely with a bond professional can help reverse the decision.

What to Do If Denied

We’ve noticed that contractors can take several steps to improve their chances after being denied, such as:

  • Improve Credit Score: Address any credit issues, as sureties often weigh this heavily.
  • Strengthen Financials: We’ve personally learned that sureties are more likely to approve contractors who can show solid, updated financial statements.

Tips for a Smooth Application

  • Be Proactive: Start the application process early to avoid last-minute rushes.
  • Consult Professionals: We’ve consistently observed that working with bond experts can help you navigate potential pitfalls.
  • Provide Detailed Documentation: Accurate financials and clear proof of experience always make a strong case.

Detailed bid bond document with signatures, helmet, and Ohio landmarks - Understanding the structure and significance of bid bonds in Ohio's construction industry.

Concluding Thoughts: The Framework of Ohio Bid Bonds

In our professional life, we’ve consistently observed that bid bonds are crucial for securing construction projects in Ohio. These bonds protect project owners while ensuring contractors are committed to their bids. Whether you’re new to the bidding process or a seasoned contractor, understanding bid bonds and partnering with a reliable surety provider is key to success. Our experience has taught us that preparation and professional advice make all the difference in navigating Ohio’s bid bond landscape.

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