Bid bonds.
Every state we write.
A bid bond tells the project owner your number is real: if you win, you’ll sign the contract and furnish the performance & payment bonds it requires. Light RFP issues them at $0 — no premium, no fee. The same application prequalifies you for the performance & payment bond on the job you win, priced at a flat 3% with no credit-tier upcharge. Pick your state below for the exact requirement and the statute that sets it.
Bid bond vs performance bond
The two contract bonds do different jobs at different points in the same deal.
| Bid bond | Performance & payment bond | |
|---|---|---|
| Guarantees | You’ll sign the contract and furnish the final bonds | You’ll complete the work and pay your subs and suppliers |
| When | Submitted with your bid | Required after award, before work starts |
| Amount | 5–10% of the bid (20% federal, capped at $3M) | 100% of the contract value |
| Cost at Light RFP | $0no premium, no fee | Flat 3%$275 minimum |
| Credit | Soft pull only | Soft pull; up to $3M on credit alone, no audited financials |
The industry quotes performance bonds at 1–3% of contract value, but that range is a credit tier — thin-credit contractors pay the top of it, and often a minimum premium besides. Ours is the same 3% for everyone, and the bid bond that gets you there is free.
Are bid bonds really free?
At Light RFP, yes: $0 premium and $0 fee, in every state we write. The catch is commercial, not hidden — the same application prequalifies you for the performance & payment bond on the job you win, priced at a flat 3% of the bond amount, and that bond is where we earn. Many agencies also issue bid bonds at no charge to contractors in their bonding program; some charge a flat fee for a standalone bid bond.
Do I need a bid bond on every public bid?
Usually. Most public agencies require bid security of 5–10% of the bid amount (20% on federal work, capped at $3M), and the solicitation says which form they accept. A bid bond is the standard form because it costs the bidder nothing up front, unlike a certified check or cash deposit that ties up your money until award.
What does a bid bond actually guarantee?
That if you are the successful bidder you will sign the contract and furnish the performance and payment bonds it requires. If you walk away, the surety pays the owner the difference between your bid and the next one, up to the bond amount, and then recovers it from you. It does not guarantee the work itself; the performance bond does that.
Does applying for a bid bond affect my credit?
No. Any credit check is a soft pull that never appears as a hard inquiry and never affects your score. The bid bond application asks for business details, the project, and the bid amount; the same information prequalifies the performance & payment bond so there is nothing to fill out twice after award.
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