Bid Bond Services

Written by Michael O'Brien
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Bid bond services are meant to protect an obligee, or someone paying to have a particular job done, from misrepresentations made in the bidding process. When a business like a construction company makes a bid for how much time and money it will take to complete a project, it's absolutely crucial those projections be as accurate as possible. This is also why it is so important to only deal with bonded companies.

Bid Bond Services: Meeting Promises

Let's say I want to add an addition to my house. I contact several contractors, make appointments, show and explain to them what they will be doing, and allow them to make calculations. Based on all of this, those contractors explain to me in detail exactly what they will have to do to fulfill my requirements, how much time it will take, and the overall expense.

This is where things get tricky and where bid bond services come in handy. What's to stop a contractor from fudging a little on the cost and time estimates? Believe it or not, it's happened to me before. When I was a kid, my family once paid to have a driveway project done on our house. The neighbors across the street had just done the same with this particular driveway company, and it looked great.

The problem ended up being that it did indeed cost a little more than projected, and it took them much longer to complete the job than they said it would. The moral of the story is that bid bond services are meant to protect people from such things. Bonded companies don't make those kinds of mistakes. Even if they somehow do, the surety company bonding them must then pay for it.

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