bid bond


A bond purchased by a company or individual bidding on a large project or sale in order to demonstrate that sufficient funding exists to complete the transaction if they are selected. The bond guarantees that the bidder will not be prevented from fulfilling the contract by availability of funding.

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The bid bond was made as we wanted to invest and loan money to the company that we supported our whole lives.

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My uncle's construction company is dependent upon bid bonds in order to start planning and development on start-up architectural projects.

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Companies and contract work providers, looking to enhance their portfolio, should look at the worthiness of placing a 'deposit' on their ability to complete a successfully awarded contract by purchasing a bid bond.

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