Bid Bonding Question?

[fensoncont.]

Hey guys,

I have a question about Bid Bonding. On this job I'm bidding there is an item in the Bid Tab for Bond 1 L.S. And the engineer said 100% bid bond. I was wondering what % of my bid I would put in there for that. Can someone just give me an example of a percentage that a bonding agent charges the contractor?

 

[dayexco]

that will vary from contractor to contractor depending on financial stability of the contractor, his history on completing jobs without problems and being on time, i've seen rates from anywhere from 3/4% to 5 1/2%

 

[fensoncont.]

Thanks, that will give me a nice general idea on what to put in there. I appreciate it!

 

[grubber]

Hey

I've also just started bidding jobs that require bonds. I've found that that most of mine are cover with a 3 % fee and I'm new to this. I don't think you should pay more than that.

 

[Landworks]

This may take a little time for you to secure your first Bid Bond. You also need to find out if you are awarded the job, do you have to supply a Performance Bond.

 

[aliceco]

Yes, as far as I know most agents are okay with 3 to 5% for newbies. If the contractor is well-known and highly experienced the rate will go down.

 

[ForsytheBros.]

We do not get charged a fee by our surety for bid bonds. That said, the bid security that we obtain is almost always a 5 percent bid bond (with the exception of those projects which allow alternate security such as returnable cashier's check). Do 100% bid bond projects come up for you guys often or are they 5% (or some other value)?

Our Performance Bonds are usually 100% bonds and the fees that we have paid and heard of are in line with those percentage ranges listed by others above....

 

[powerjoke]

typically its a 5% bid bond and 100% performance bond for us,

the performance bond cost varies greatly on your work experiance, ins company and many other things, but the bid bond is always free......providing you buy thier performance bond

Pj

 

[Greg]

I have never heard of a 100.0% bid bond. Everything I am familiar are either 5 or 10% bid bond. I get bid bond for no charge. Performance bond is always 100%. That usually costs me about 3.0%.