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 performance 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 performance 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) 225-8501. 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.
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These rates are for Merit clients, Standard rates are higher
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 913-225-8501. We fully review each application for bid and performance 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 and P&P bonds at the best rates possible.
What is a Oklahoma Bid Bond?
A bid bond is a bond that provides assurance that you will accept the work if you win the contract. The bid fee (usually five (5%) or ten (10%) percent) is a penalty that is paid when you win the bid, but then decide not to take the work.
Find a Bid Bond near Me
Typically, a bid bond and P&P bond are done together in the same contract by the surety. This way, the owner of the project is assured that the project can be completed pursuant to the terms of the contract and that it will not be liened by any contractor. This is performance security for the owner of the project.
Who Gets the Bond?
The general contractor is the company that obtains the bond. It is for the benefit of the owner (or in the case of government contract work, the governmental entity). It's the general contractor that has to apply for the bond and be underwritten before the performance and payment bond is written by the surety. This is also known as bonding a business.
We provide bid bonds, performance and payment bonds in each of the following counties:
See our Oregon Bid Bond page here.
More on Bid Bonds https://swiftbonds.com/bid-bond/.
Straightforward Guidelines When Looking At Bid Bonds
Surety Bid Bond is extremely important for anybody, but this is complex if you don't have any idea concerning this. Basically, this is not an insurance claim, but it is a kind of guarantee that you, as the principal, will do the work properly for the obliged.
You have to know that most folks will need you to obtain a certain bond before they opt for your services because this will likely be a form of guarantee to them. Since they need this kind of thing from you, it is important to seek out an insurance company which will offer this to you.
If you wish to get a license bond, permit bond, commercial bond and more, you are going to understand what Surety Bid Bond means. Here are a few of the things that you have to know.
An Explanation On Bid Bonds
Bid Bonds will be required by the public as it can secure them and it may also guarantee that the principal will fulfill their duties. As the principal, you need to get a license Surety Bid Bond to guarantee that your company will abide by the laws and you need a contract bond to make certain that a public construction project will likely be accomplished. There are examples that will provide an idea on Surety Bid Bond.
This is actually made for the customers since they're protected by the bond, but it would benefit you as well because they will trust you if you have a Surety Bid Bond.
How Does It Work
Bid Bonds are regarded as a three-party agreement between a surety company, the obliged and the principal. The principal is actually the employer or company which will provide the services and the obliged is the project owner. Construction companies are often necessary to purchase Bid Bonds once they are considering a public project. The government may also require the construction company to secure a host of bonds as soon as they really want to go with the project.
The main function of the bond is actually for the subcontractors and workers to ensure that they will be paid even when the contractor defaults. The contractor will cover the losses, but when they reached their limit, the duty will actually fall to the surety company.
How To Apply For A Surety Bid Bond
Bid Bonds are usually provided by insurance providers, but you will have some standalone surety businesses which will specialize in these products. A surety company has to be licensed by a state Department of Insurance.
It is hard to apply for a bond because the candidates will surely experience a procedure that's comparable to applying a loan. The bond underwriters would evaluate the financial history of a candidate, credit profile and other key factors.
It implies that there's a chance that you will not be accepted for a Surety Bid Bond, specially once the bond underwriters saw something from your credit rating.
How Much Are You Going To Spend For This?
There's no specific cost when it comes to a Surety Bid Bond since it will still depend on various reasons including the bond type, bond amount, where the bond will probably be issued, contractual risk, credit rating of the applicant and more. There are thousands of bonds currently available and the cost will depend on the type that you plan to acquire. It will not be a problem for the amount of bond because you will get a $10,000 bond or a $25,000 bond. For those who have a credit history that is above or near 700, you could qualify for the standard bonding market and you simply need to pay about 1 to 4 percent of the Surety Bid Bond amount. If you will get a $10,000 bond, it will only cost $100 to $400.
Your Application Could Be Rejected
There's a possibility that your license and permit bond request will be declined by the surety company because it will depend on the things that they will get from the background check. If the surety company thinks that it will likely be a risk to offer you a Surety Bid Bond, they will definitely deny your application. Your credit rating is one of the most important factors to be accepted for a surety body because in case you have a bad credit history, it will likely be tough to get a Surety Bid Bond.
If you can get a Surety Bid Bond even in case you have a bad credit history, you will obviously pay an interest rate of 10 to 20 percent.
If you genuinely wish to get your Surety Bid Bond, you need to make certain that you will understand the process so you won't make a mistake. It will not be simple to apply, but if the requirements are met and you are eligible, you will get a Surety Bid Bond.