Platinum Bonds Insurance Agency
Research before you apply.A bid bond is required when contractors submit bids on Iowa construction projects, typically equal to 5% of the bid amount for public works. This bond guarantees that if you're awarded the contract, you'll sign it and provide the required performance and payment bonds. If you fail to do so, the project owner can claim…
A bid bond is required when contractors submit bids on Iowa construction projects, typically equal to 5% of the bid amount for public works. This bond guarantees that if you're awarded the contract, you'll sign it and provide the required performance and payment bonds. If you fail to do so, the project owner can claim…
Contractors bidding on Iowa public improvement projects and many private construction projects. Required for virtually all state and local government construction contracts under competitive bidding, especially projects exceeding the competitive bid threshold ($139,000 in 2025 for vertical improvements). Also commonly required by private project owners for …
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
Iowa requires bid security equal to 5% of the bid amount for virtually all state and local public improvement contracts under competitive bidding. This can be submitted as a bid bond, cashier's check, certified check, or share draft. The 5% standard is established under Iowa Code §73A.20 and applies to projects exceeding the competitive bid threshold ($139,000 in 2025 for vertical improvements).
If you're awarded the contract but fail to sign it or provide the required performance and payment bonds, the project owner can retain your bid bond amount as liquidated damages. Under Iowa Code §73A.20, the full bond amount is forfeitable for non-performance. This protects the owner from having to re-bid the project and potentially pay higher costs to the next lowest bidder.
Yes. Once awarded the contract, Iowa's Little Miller Act (Iowa Code §573.2) requires a performance and payment bond at 100% of the contract price for public improvement projects of $25,000 or more. The bid bond only guarantees you'll enter into the contract; the performance and payment bonds guarantee you'll complete the work and pay subcontractors and suppliers. These must be issued by an Iowa-licensed surety company.
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.