Bid Bond – A type of contract surety bond. It is a three-party contract in between the Principal, the Obligee and the Surety. The bond verifies that if the specialist is the reduced bidder, they will become part of a contract for the proposal. The bond works as insurance coverage to safeguard the Obligee, and compensates for the costs on rebidding a task if the Principal does not agreement.
« Back to Glossary Index