Your Trusted Partner for Bid Bonds in Arizona
Southwest Bond Services is the leading bid bond surety bond agency in Arizona.
We know exactly what needs to be listed on the bond form to avoid rejection and further delays in a process that is already frustrating for the applicant.
What States Can I Get a Bid Bond For?
You can get a Bid Bond from Southwest Bond Services for the following states:
- Arizona
- Arkansas
- California
- Colorado
- Florida
- Georgia
- Louisiana
- Mississippi
- New Mexico
- Nevada
- New York
- North Carolina
- Ohio
- Pennsylvania
- Tennessee
- Texas
- Virginia
- Washington
What Is a Bid Bond?
A bid bond guarantees compensation to the obligee/owner if the bidder fails to enter into a contract pursuant to their bid terms.
Bid bonds are often used for construction jobs or other projects with similar bid-based selection processes.
The amount of a bid bond is usually 5-20% of the bid price and often will be followed by payment and/or performance bonds in the event that a contract is awarded.
Why Do You Need a Bid Bond?
A bid bond is required per law for the majority of public and federal construction jobs that are over a certain threshold. Bid bonds may be required for other industries such as food service management, janitorial, ambulance contracts, school bus contracts and many more.
Their purpose is to guarantee the owner that they will enter into a contract per the terms of their bid and then provide payment and/or performance bonds, if required. If a bid bond is required and not included with the bid, the owner will most likely label the bidder as unresponsive and reject the bid.
It is important to thoroughly read through all the terms and requirements of a bid package to determine if a bid bond and subsequent payment and performance bonds are required.
Bid Bond FAQs
How Does a Bid Bond Work?
A bid bond is submitted with a bid, as required by the bid specs, in lieu of a cash deposit. The owner will hold it until the awarded bidder enters into contract. If the bidder enters into contract per their bid, the bond is then null and void.
How Long Does It Take to Get a Bid Bond?
This is largely dependent on the size of the bid and qualifications of the bidder. Many bid bonds can be done same day or next day.
How Long Does a Bid Bond Last?
A bid bond is active for the low bidder until entered into contract
How Hard Is It to Get a Bid Bond?
This is dependent on the size of the bid and qualifications of the bidder. With good credit and bid size under 850k, a simple 1 page application and job specs is all that we need for approval.
What Are the Requirements for Obtaining a Bid Bond?
We start with an application to review credit history and depending on job size, request business and personal financial statements, among other items.
We are set up to issue bid bonds with ADOT (Arizona Department of Transportation) who require all bids to go through an online platform. Not all bond agents are set up to issue bid bonds with ADOT.
We also are an approved agent set up with the SBA (Small Business Administration) This allows for us to gain approval on bid bonds for businesses with bad credit and/or limited financials.
What Is a Bid Bond in Construction?
A bid bond in construction is a guarantee to the owner of the project that the contractor bidding the job will enter into contract per the terms of contract at the amount bid and provide subsequent payment and performance bonds, if required.
Need a Bid Bond? Have Questions?
Talk to Our Bond Experts at (623) 974-6453