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We can write Michigan Bid Bonds. A Bid bond is a bond needed to bid on a construction job. If you are rewarded the bid you will then be required to obtain a final bond also known as a payment and performance bond. When applying for a bid bond keep in mind that the surety company will be underwriting your bond off of the full contract amount but issuing the bond in the amount of the bid. The State, city or private obligee can require these bonds to safeguard their investment. Banks sometimes require bid bonds as well as a condition before the bank will lend money for a project
When applying for your bid bond please include a copy of your bid specs as well as a draft of the contract. Bid bonds are usually calculated of a percentage of the full contract amount normally 5% but it is at the obligee's discretion. Always check with the obligee and ask for a bid package. We have excellent markets for this type of risk; we even have had to place markets for bid bonds as well.
Michigan contractors that need this bond also need contractor permit bond: The licensing law does not require a builder or contractor to have insurance or a bond. Insurance is usually required as a condition of obtaining a building permit from a city, village, or township. These permit bonds promise whatever the underlying statute, state law, municipal ordinance, or rule (regulation) requires. Call if you have any questions that we can assist you with.
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