Michigan Bid Bond
In Michigan, a bid bond is part of the bidding process to provide guarantee that the winning bidder will adhere to the contract that they bid. The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.
Most bid bonds have an amount equal to 10% of the full bid price for the contract. Once the bidder has won the contract, performance bonds and payment bonds are usually required.
Michigan Bid Bonds
are usually required when any job is for a public works agency and the anticipated contract will be more than $25,000.
Bid bondshelp to avoid frivolous bids and guarantees that the principal will enter into the contract if it is awarded. A bid bond guarantees that the job owner will be paid the difference between the contractors bid price and the next closest bid.This action is only triggered should the principal be awarded the contract but fails to enter into the contract.
If the contractor is "low bidder" or otherwise selected for the job, it will require a "final bond." These bonds are usually payment and performance bonds. There are several types but these are the most common.
In most instances bid bonds are issued after the underwriting process at no charge. You will need to send us the RFP or RFQ and the bond forms.
Obtaining a Michigan Bid Bond at Jane Bond Surety is simple.
Many bonds can be obtained in as little as an hour. Some take longer. Use the highlighted bullet points above to determine what you can expect when applying for this bond. Many (not all) bonds require a credit check. In many instances it simply depends on the actual bond one is applying for and the insurance company's experience in that category. Some bonds are considered low risk and some are considered higher risk. Bonds that do not require a credit check are usually instantly issued.
We, at Jane Bond Surety & Insurance, take your contract bond very seriously. We also consider the cost. We make every effort to obtain the quickest bond at the lowest rate. If at any juncture you have any questions call us at: 1-844-933-4455.
Quote via email.
Once we receive your app we will locate the best rate available to us. We will communicate that to you via email. The email will contain instructions on how to proceed.
When you decide to move forward we will provide you with options to pay the premium, receive the bond as well as shipping options. It's really that simple!
We have several programs that contractors can apply for. Some bond requests will require additional underwriting. We work with you for a smooth transition and placement with a surety.