Oklahoma Bid Bonds

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)

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 Oklahoma?

A bid bond is one of the types of surety bonds, which guarantees that the bidder will accept the project and complete it according to its terms. It 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 simple reason is that you need one in order to get the work. But the bigger question is why are more owners/developers requiring a bid bond? The simple answer is risk. Given the uncertainty of the marketplace, which includes long-time 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 finish 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 Oklahoma 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 Oklahoma?

Swiftbonds does not charge for a surety 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 surety 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 OK?

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 Oklahoma. 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 Oklahoma?

We make it easy to get a contract bid bond.  Just click here to get our Oklahoma Bid Bond Application.  Fill it out and then email it and the Oklahoma bid specs/contract documents to [email protected] 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 surety bond for your company. We have a excellent success rate in getting our clients bid bonds at the best rates possible.

Understanding the Oklahoma Bid Bond: A Crucial Tool for Contractors

From our perspective, an Oklahoma bid bond is an essential safeguard for contractors seeking to bid on public or private projects. It serves as a guarantee to the project owner (the obligee) that the bidding contractor (the principal) will honor their bid and, if awarded the contract, enter into the agreement and provide the necessary performance and payment bonds. Without this bond, a contractor's bid might not be considered, and from what we’ve seen, it’s a vital step in maintaining project integrity across Oklahoma.

How to Find a Bid Bond Near You: Simplifying the Search

In our observation, finding a bid bond provider in Oklahoma is a straightforward process. Numerous surety companies, brokers, and agents across the state offer this service. We’ve consistently found that working with a local surety provider who understands Oklahoma’s regulations and construction landscape offers the best results. Additionally, many providers now offer online application processes, making it easier than ever to secure the bid bond you need without leaving your office.

Who Benefits from Bid Bonds in Oklahoma? Key Stakeholders

We’ve learned that several key parties benefit from bid bonds in Oklahoma. Here are the primary groups:

1. Project Owners: Protected from contractors backing out after being awarded the bid. They can confidently move forward knowing the contractor will honor the bid and complete the contract.
2. Contractors: Bid bonds enhance the contractor's credibility, signaling that they are serious about the project and financially stable enough to secure the bond.
3. Surety Companies: Sureties assume the risk if the contractor defaults, making them a crucial part of the equation. They provide financial backing and monitor the contractor’s performance.

From our own trials, we’ve seen that this tripartite relationship creates a win-win for all parties involved.

We provide bid bonds bonds in each of the following counties:

Adair
Alfalfa
Atoka
Beaver
Beckham
Blaine
Bryan
Caddo
Canadian
Carter
Cherokee
Choctaw
Cimarron
Cleveland
Coal
Comanche
Cotton
Craig
Creek
Custer
Delaware
Dewey
Ellis
Garfield
Garvin
Grady
Grant
Greer
Harmon
Harper
Haskell
Hughes
Jackson
Jefferson
Johnston
Kay
Kingfisher
Kiowa
Latimer
Le Flore
Lincoln
Logan
Love
McClain
McCurtain
McIntosh
Major
Marshall
Mayes
Murray
Muskogee
Noble
Nowata
Okfuskee
Oklahoma
Okmulgee
Osage
Ottawa
Pawnee
Payne
Pittsburg
Pontotoc
Pottawatomie
Pushmataha
Roger Mills
Rogers
Seminole
Sequoyah
Stephens
Texas
Tillman
Tulsa
Wagoner
Washington
Washita
Woods
Woodward

And Cities:
Tulsa
Oklahoma City
Norman
Edmond
Lawton
Stillwater
Broken Arrow
Enid
Moore
Muskogee

See our Oregon Bid Bond page here.

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

Practical Tips for Securing a Bid Bond: Steps for Success

Through our own efforts, we’ve gathered that there are several practical steps contractors should follow when securing a bid bond in Oklahoma:

1. Prepare Your Financials: Surety companies scrutinize your financial health, so ensure that your financial documents and credit history are up-to-date and organized.
2. Partner with a Reputable Surety: From what we’ve seen, choosing a surety with industry experience and a strong reputation can streamline the process.
3. Don’t Procrastinate: Apply for the bond early in the bidding process to avoid potential delays that could derail your chances.

We’ve consistently found that preparation is the key to success when working with bid bonds.

Understanding Surety Bid Bonds: A Crucial Protection

We’ve come to recognize that a surety bid bond is more than just a financial guarantee—it’s a contract of trust. The surety (the bond issuer) acts as a guarantor between the project owner and the bidding contractor. In our dealings with surety companies, we’ve found that this bond is essential in ensuring that the bidding process is fair and reliable, helping both contractors and project owners move forward with confidence.

How Bid Bonds Work: Step-by-Step Process

Based on our experience, we’ve identified several steps to how a bid bond works in Oklahoma:

1. Application Submission: Contractors submit an application to a surety company, which includes financial documents and project details.
2. Surety Review and Evaluation: The surety reviews the contractor’s financial stability and creditworthiness.
3. Underwriting: The surety company conducts an underwriting process where they assess the contractor’s risk level. This evaluation helps determine if they will issue the bond and under what terms.
4. Approval or Denial: After underwriting, the surety will approve or deny the bond application. If approved, the bond is issued. If denied, you may need to address financial issues and reapply.
5. Issuance of the Bid Bond: If your application is successful, the surety will issue the bid bond, guaranteeing that you will honor the bid and enter the contract if awarded.

We’ve observed that contractors who are financially sound and well-prepared tend to move through this process smoothly, ensuring a seamless bidding experience.

The Application Process for a Surety Bid Bond in Oklahoma

We’ve often noticed that the application process for a surety bid bond in Oklahoma involves several key steps and requirements. Ensuring that you understand the process and meet all the necessary criteria can significantly improve your chances of approval.

The Application Process: Step-by-Step

1. Submit the Application: The first step is to submit an application to a surety company, including relevant financial and business information.
2. Surety Review and Evaluation: The surety reviews your financial standing, business history, and creditworthiness to assess whether you qualify for the bond.
3. Underwriting: The surety company assesses your risk profile and determines if they can issue the bond and under what terms.
4. Approval or Denial: Based on the underwriting process, the surety will either approve or deny your application. If denied, you may need to improve financial standing before reapplying.
5. Issuance of the Bid Bond: If approved, the bid bond is issued, allowing you to submit it along with your project bid.

We’ve consistently found that contractors with strong financials and business credentials move through this process more efficiently.

Requirements for Application:

1. Financial Documentation: Contractors must provide financial statements to demonstrate their financial capacity.
2. Credit Check: A good credit score, typically above 650, is crucial.
3. Project History: Surety companies may require a record of successful project completions to assess the contractor’s capability.
4. Other Documents: Additional paperwork, such as business licenses and insurance details, may be needed.

We’ve personally found that meeting these requirements is essential for the approval process. Contractors who are well-prepared and submit all necessary documents tend to have a smoother application process.

Understanding the Cost of a Surety Bid Bond: What to Expect

We’ve found through experience that the cost of a surety bid bond in Oklahoma is typically based on the project size and the contractor’s financial standing. Here’s what to expect:

1. Small to Medium-Sized Projects: Typically cost between 1% to 3% of the total project bid amount.
2. Larger Projects: Rates can vary, but financial strength and experience play a significant role in reducing costs.

In our view, contractors with a strong financial history and a proven track record of completing projects on time may qualify for lower bond rates, saving money in the long run.

Can You Be Denied a Bid Bond? Reasons and Solutions

We’ve personally faced situations where contractors have been denied a bid bond. Here are the most common reasons for denial:

1. Poor Credit History: Contractors with low credit scores are often seen as higher risks by surety companies.
2. Inadequate Financial Documentation: Incomplete or inaccurate financial records can lead to bond denial.
3. Lack of Experience: Contractors without a solid project history may struggle to convince the surety of their capability.

How to Avoid Denial:

We’ve come to understand that avoiding denial involves being proactive. Here are the steps to improve your chances:

1. Improve Credit: Focus on improving your credit score before applying for a bond.
2. Prepare Financials: Ensure all financial documents are organized, up-to-date, and accurate.
3. Build Relationships: Establish a relationship with a reliable surety company early in your career.

From our perspective, taking these actions can significantly improve your chances of getting your bid bond approved.

Final Insights: Why Bid Bonds Are Essential in Oklahoma

We’ve had the privilege to work on numerous projects that required bid bonds, and we’ve come to appreciate their importance in Oklahoma’s construction landscape. Not only do they protect project owners and create fairness in bidding, but they also help contractors build trust and credibility. In our dealings with surety companies and contractors, we’ve consistently found that securing a bid bond is a crucial step toward project success in Oklahoma.

Learn more on state of Oklahoma bids.