Who pays for the bid bond?

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Multiple Choice

Who pays for the bid bond?

Explanation:
A bid bond is a form of bid security that accompanies a bid to guarantee the bidder’s commitment to enter into the contract if awarded. The cost of obtaining that bond, including the premium charged by the bonding company (the insurer in this context), is paid by the bidder. The owner benefits from having the guarantee, and the bond protects against a bidder backing out. So the bidder is the one responsible for paying for the bid bond.

A bid bond is a form of bid security that accompanies a bid to guarantee the bidder’s commitment to enter into the contract if awarded. The cost of obtaining that bond, including the premium charged by the bonding company (the insurer in this context), is paid by the bidder. The owner benefits from having the guarantee, and the bond protects against a bidder backing out. So the bidder is the one responsible for paying for the bid bond.

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