The client holds onto the bid bond until the lowest bidding party enters into a formal signed agreement. Once contracted, the company provides the client with another surety bond called a performance bond. The client returns the bid bond to the company in return for submitting the performance bond.26 sept 2017
How long are bid bonds good for?
90 days
Do you get your money back from a surety bond?
Surety companies will typically refund all unearned premium, however there are two distinct situations that will cause a bond to be ineligible for a refund: If the bond does not have a cancellation clause, therefore it cannot be cancelled mid-term and will have no unearned premium.12 mar 2021