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i am going to bid on a school that requires
1.bid bond,cashiers check or certified check payable to the school.
my question is what do i do?
2.bid must include or be accompanied by a certificate(consent of surety)from a surety company stating thatit will provide the bidder ,ifsuccessful,with a performance bond in the full sum of the contract.
what does this mean?
what is that?
01-25-2002, 07:27 PM
You can cut the check for the bid bond, however normally it has to be a cashiers check and not a company or personal check. If you don't get the job the money is returned to you. If you back away from the job after they award it to you, they keep the money as penalty (liquidated damages) for not accepting the job after it has been bid and let.
Then, if you get the job, you'll need a "performance bond". This is an insurance policy that basically states that if you don't finish the project, the insurance company will pay to have the job completed. Getting bonding can be a big deal depending upon your finances. It is also quite a process and you will need financials for at least three years, a listing of jobs completed and the profit generated by each job (probably for the past 5 years). And, you will sign that the insurance company can take anything you have if you forfeit the bond (by not completing the job to the satisfaction of the owner).
Once you have bonding capability, a new world of possible work will open up to you.
Your insurance agent should be able to guide you through the entire process.
Non Collusion Afidavits are documents that you sign to attest to the fact that you have not colluded with anyone to rig the bid. You have not attempted to 'fix' the price by working with other contractors in an effort to pump up the bid price by working with them to make one of you look good on the bid tally. And, that you have not worked with anyone involved in writing the bid specifications to gain an unfair advantage over others in the bidding process. This is a standard document that usually is in the bid package when dealing with federal or state or city funds (or any other jobs funded by public funds.
Hope this helps.
john thanks for your reply...
is this something (bond) i should have looked into before i looked into bidding on thease jobs?
what kind of cost ($14,000 job)
01-26-2002, 12:42 AM
John, you are a patient man to take the time to type out the same response to the same question asked by the same person elsewhere.
Hope things are going well for you in Utah.
01-26-2002, 02:33 AM
Nah... I just copied and pasted it. Although I answered much more completely and corrected the typos in this one.
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