Bid Gurantee

[BLC1]

I went to a prebid meeting this morning and ran into something I haven't seen before. In the package it states you must write a check for 10% of your bid amount for a bid gurantee. Why am I writing them a check??

[2 clowns mowing]

to show them you want the job and most likely they will keep it as extra

[abuckeye]

You should be able to use a bid bond as well. I have one now I am working on that requires a bid bond.

[BLC1]

Yeah, I could also use a bid bond. What is the difference in just sending in a check and sending in the bid bond?

[BLC1]

They will keep the amount of all the different companies submitting bids? That doesn't seem right.

[Scagguy]

I could see obtaining a performance bond, but putting up 10% of the amount? Nope....don't think so.

[grass-scapes]

Originally Posted by BLC1

They will keep the amount of all the different companies submitting bids? That doesn't seem right.

They only keep yours. When your contract is finished, it is returned to you...maybe with interest. It is a "guarantee" that you do what you say in your contract with them. If you drop the contract, they keep it to get the work done from someone else.

[LawnGuy73]

Originally Posted by grass-scapes

They only keep yours. When your contract is finished, it is returned to you...maybe with interest. It is a "guarantee" that you do what you say in your contract with them. If you drop the contract, they keep it to get the work done from someone else.

Bingo, this is pretty common with large real estate companies.

[BLC1]

Gotcha. that sounds a little better. I'll check to see if I'm getting some interest on that.