Illinois Bid Bond

No, Illinois does not have a statewide statute that mandates bid bonds on all public works projects. While the Public Construction Bond Act (30 ILCS 550) requires performance and payment bonds for projects exceeding $150,000, bid bonds are typically required on a project-by-project basis through the bid documents, agency rules, or local ordinances. IDOT, municipalities, counties, and school districts commonly require bid bonds as part of their bidding requirements, but it varies by project and jurisdiction.

Illinois bid bonds are typically set at 5-10% of your total bid amount. The exact percentage is specified in the bid documents by the project owner (such as IDOT, municipalities, or other public agencies). For example, if you're bidding $500,000 on a project requiring a 10% bid bond, you would need a $50,000 bid bond. Always check the specific project's bid solicitation documents for the required bid security amount.

If you're awarded the contract but fail to sign the contract or provide the required performance and payment bonds, the bid bond protects the project owner. The surety company will pay the difference between your bid and the next lowest responsive bid, up to the bid bond penalty amount (typically 5-10% of your bid). This compensates the owner for the increased cost of awarding to another contractor. You and your surety may also be held liable for additional damages or be barred from future bidding.