Platinum Bonds Insurance Agency
Research before you apply.A bid bond guarantees that if a contractor wins a public or private construction project bid in Indiana, they will sign the contract and provide the required performance and payment bonds. It protects project owners from financial loss if the winning bidder withdraws or cannot fulfill their commitment, typically cover…
A bid bond guarantees that if a contractor wins a public or private construction project bid in Indiana, they will sign the contract and provide the required performance and payment bonds. It protects project owners from financial loss if the winning bidder withdraws or cannot fulfill their commitment, typically cover…
Contractors bidding on Indiana public works projects (especially INDOT and local government projects valued over $100,000) and contractors bidding on private construction projects where the owner requires a bid bond. The bond is required at the time of bid submission and is typically 5-10% of the total bid amount.
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
For INDOT (Indiana Department of Transportation) projects, bid bonds are required at 5% of the bid amount under 105 IAC 11-3-8. For general state public works projects over $200,000, bid bonds are required under IC § 4-13.6-7-5 at a percentage set by the director. Local government projects may have specific requirements (such as 5% under IC § 36-9-27-78 for drainage/municipal projects). The bond amount typically ranges from 5-10% of the total bid amount depending on the project type and owner requirements.
If you win a bid but fail to provide the required performance and payment bonds (or refuse to sign the contract), the project owner can make a claim against your bid bond. The surety company will pay the project owner for damages up to the bond amount, which typically covers rebidding costs or the difference between your bid and the next lowest bidder. The surety will then seek reimbursement from you for any amounts paid. This is why it's critical to ensure you can qualify for performance and payment bonds before submitting a bid.
Any contractor bidding on Indiana public works projects typically needs a bid bond, especially for INDOT projects and local government projects valued over $100,000. Under IC § 4-13.6-7-5, bid bonds are mandatory for state public works projects over $200,000 and may be required for projects under that amount at the director's discretion. Private construction project owners may also require bid bonds as specified in their bidding documents. The bid bond must be submitted at the time of bid and demonstrates the contractor's financial capability to complete the project if awarded.
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.