Bid Gurantee

Discussion in 'Lawn Mowing' started by BLC1, Feb 26, 2008.

  1. BLC1

    BLC1 LawnSite Senior Member
    from Ohio
    Posts: 714

    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. 2 clowns mowing

    2 clowns mowing LawnSite Senior Member
    Posts: 566

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

    abuckeye LawnSite Member
    Posts: 93

    You should be able to use a bid bond as well. I have one now I am working on that requires a bid bond.
     
  4. BLC1

    BLC1 LawnSite Senior Member
    from Ohio
    Posts: 714

    Yeah, I could also use a bid bond. What is the difference in just sending in a check and sending in the bid bond?
     
  5. BLC1

    BLC1 LawnSite Senior Member
    from Ohio
    Posts: 714

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

    Scagguy LawnSite Bronze Member
    Posts: 1,522

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

    grass-scapes LawnSite Bronze Member
    Posts: 1,552

    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.
     
  8. LawnGuy73

    LawnGuy73 LawnSite Bronze Member
    Posts: 1,945

    Bingo, this is pretty common with large real estate companies.
     
  9. BLC1

    BLC1 LawnSite Senior Member
    from Ohio
    Posts: 714

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

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