Bid Bond (Construction)

If you're awarded an Ohio public works contract but fail to enter into the contract or provide the required performance and payment bonds (except as authorized by ORC 9.31 or 153.54(G)), your bid bond is forfeited. The project owner can award the contract to the next lowest bidder and claim against your bond for the cost difference or a penalty up to 10% of the bond amount, whichever is less. This ensures project owners are protected from bid withdrawal.

Contractors bidding on Ohio public works projects exceeding $50,000 must provide a bid guaranty under ORC 153.54. This includes any construction, demolition, alteration, repair, or reconstruction work for state agencies, political subdivisions, districts, or institutions. Private construction projects may also require bid bonds at the project owner's discretion. County commissioners may exempt projects of $100,000 or less from bond requirements by unanimous vote.

For Ohio public works construction projects exceeding $50,000, you must provide a bid guaranty in one of these forms: (1) a bid bond for the full amount of your bid, or (2) a certified check, cashier's check, or letter of credit equal to 10% of your bid amount. Highway projects under ORC 5525.16 require 5% of the bid (maximum $50,000) via check or EFT, or a 10% bid bond. Private projects vary by owner requirements, typically 5-10% of the bid amount.