
Ohio Orc Bid Guaranty Bond Form


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People also ask
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What is the risk of a bid bond?
The risk of a bid bond is the failure to meet the obligations. If the winning contractor fails to execute the contract for reasons known to them, the project owner will award the second lowest bidder and pay more. In this case, the project owner can make claims against the partial or full bid bond cost.
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Why is the contractor normally required to submit a bid bond when making a proposal to an owner on a competitively bid contract?
Bid bonds are required so that the owner doesn't have the low bidder back out of a contract if he doesn't like the price he's given after he's seen all the other prices, or if he suddenly lands a bunch of work and decides he doesn't want to do the work that he priced. It's protection for the owner.
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What is Section 153.571 of the Ohio Revised Code?
Section 153.571 | Form of bond. (If the foregoing blank is not filled in, the penal sum will be the full amount of the principal's bid, including alternates. Alternatively, if the blank is filled in, the amount stated must not be less than the full amount of the bid including alternates, in dollars and cents.
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What is the purpose of a bid bond?
Bid bonds protect the project owner from entering into a contract with a company that won't take that project as-bid. They can help keep contractors from exaggerating their capacity or abilities, and stop contractors from changing their mind after entering their bids for a project.
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How to qualify for a bid bond?
How a bond company determines whether or not to give you a bid bond involves looking at a few different elements: Your credit score. The length of time you've been in business. The financial resources available to complete the project. Your track record of profitable projects finished.
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What is a bid bond request?
Bid bonds protect the project owner from entering into a contract with a company that won't take that project as-bid. They can help keep contractors from exaggerating their capacity or abilities, and stop contractors from changing their mind after entering their bids for a project.
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