Platinum Bonds Insurance Agency
Research before you apply.A Bid Bond guarantees that if you submit the lowest bid on a construction project and are awarded the contract, you will sign the contract and provide the required performance and payment bonds. If you fail to do so, the bond compensates the project owner for the difference between your bid and the next lowest bid. Bi…
A Bid Bond guarantees that if you submit the lowest bid on a construction project and are awarded the contract, you will sign the contract and provide the required performance and payment bonds. If you fail to do so, the bond compensates the project owner for the difference between your bid and the next lowest bid. Bi…
General contractors, subcontractors, and construction companies bidding on public works projects in Illinois, or private projects where the owner requires bid security. Commonly required by IDOT, municipalities, counties, school districts, and other government entities.
Bid bonds guarantee that a contractor will honor their bid and enter into the contract if awarded. Typical Pricing:. • Small contracts: Commonly around 1–5% of the bid amount. • Larger contracts: Rates generally scale lower as contract size increases. • Bid bonds: Often provided at no additional cost when paired with performance and payment bonds. • Full underwriting required: Credit, financials, experience, and bonding history reviewed. Bid bonds are typically requ…
Contract underwriting required — typically 3–5 business days
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.
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.
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.
Pin down whether this is your bond, then start the application. Ava can confirm the right state and license type if you are not sure.