bid bond

Definition of "bid bond"
  1. A type of guarantee, often used in construction contracts bidding processes, to ensure that the winning bidder will take on the project and also provide a guarantee of project completion, typically in the form of a performance bond
How to use "bid bond" in a sentence
  1. As part of the bidding process, the contractor was required to submit a bid bond to ensure financial security and guarantee project completion.
  2. A bid bond is provided as a show of good faith that a contractor will fulfill their obligations if their proposal is selected.
  3. If a contractor fails to honor their contractual obligations, the bid bond can be used to financially cover the cost of selecting another contractor.

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