Is an electronic signature valid?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention are satisfied.

Do I need notarization?

Not always. Notarization depends on the obligee or state rules; some procurements require notarized acknowledgements while others accept unsigned surety confirmations.

What if names don’t match?

Mismatched legal names between principal and tax records can cause rejection or backup withholding; correct the record before submission to avoid penalties.

How to cancel a bid bond?

Revocation depends on bond terms; many bid bonds run until award or expiration. Contact the surety and review bond conditions to determine cancellation rights.

How long are documents kept?

Retention varies: keep for at least the contract term plus 3 years; IRS records require 3 years (IRC §6501(a)), HIPAA-related records 6 years (45 CFR §164.530(j)).

Technical signing issues

If a signer cannot access the platform, provide an alternative delivery method acceptable to the owner. Ensure the eSignature tool records an audit trail and preserves a PDF copy.

Electronic Signature
Templates
Miscellaneous
Bid Bond Statement Template

Bid Bond Statement Template

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BID BOND STATEMENT

This Bid Bond Statement (the "Statement") is made effective as of by and between the parties identified below.

Parties

Principal (Bidder) Name Principal Address Surety Name Surety Address Obligee (Contracting Entity)

WHEREAS

WHEREAS, Principal has submitted a bid to Obligee for the project known as (the "Project") under Bid No. ;

WHEREAS, Obligee requires a bid bond or equivalent security in the amount of to guarantee that, if awarded the contract, the Principal will enter into the contract and provide the required performance and payment bonds; and

WHEREAS, Surety has agreed to issue the Bid Bond on the terms set forth in this Statement.

Scope of Work

The scope of work covered by the bonded bid corresponds to the work described in the bid documents for the Project. Provide a concise description of the work for which this bond is issued:

Bond Details and Conditions

Bid Submission Date Bond Effective Date Bond Expiration Date

The Surety hereby binds itself to Obligee for the payment of damages up to the penal sum of in the event Principal fails to enter into the contract or to provide required performance or payment bonds in accordance with the bid documents. This obligation is subject to the conditions described herein.

Payment Terms

If the Principal is awarded the contract, payments due under the resulting contract shall be governed by the contract terms. For administrative purposes, record the anticipated contract value and invoicing schedule:

Anticipated Contract Value Payment Schedule / Milestones Late Payment Fee

Term and Termination

This Statement shall commence on and shall remain in effect until unless earlier terminated in accordance with this section.

Either Principal or Surety may terminate this Statement with written notice to Obligee provided at least prior to the intended termination date. Termination shall not relieve Principal or Surety of liability for obligations accrued prior to the effective date of termination.

Confidentiality

Each party shall maintain in confidence all nonpublic information received from the other party in connection with this Statement and the bid process. Confidential information shall not include information that is or becomes generally available to the public other than by breach of this Statement, or is required to be disclosed by law or court order, provided that the disclosing party gives prompt written notice of such requirement and cooperates with reasonable efforts to limit disclosure.

Representations and Warranties

Principal represents and warrants that the bid submitted is made in good faith and that Principal is authorized to execute and perform the contract if awarded. Surety represents and warrants that it is duly authorized to issue bonds in the jurisdiction where the Project is located and that this Statement and any bond issued hereunder are enforceable obligations of the Surety.

Governing Law

This Statement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles.

Entire Agreement

This Statement, together with the bid documents and any bond issued contemporaneously, constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties, whether written or oral. No amendment or modification shall be effective unless in writing and executed by authorized representatives of Principal and Surety.

Claims Procedure

In the event Obligee makes a claim under the Bid Bond, Obligee shall give written notice to Surety and Principal specifying the nature and basis of the claim. Surety shall have the right to investigate the claim and to require documentation reasonably necessary to verify the claim prior to payment. Payment under the Bid Bond shall be limited to actual damages sustained by Obligee as a direct result of Principal's failure to enter into the contract or to provide required bonds, up to the penal sum.

Administrative Information

Bid Amount Submitted Agent / Broker (if any) Special Conditions / Exceptions

Certification

Each signatory below certifies that they are authorized to execute this Statement on behalf of the respective party, that the information contained herein is true and accurate to the best of their knowledge, and that the respective party will be bound by the terms and conditions of this Statement and any bond issued in connection with it.

Principal Printed Name:

By:

Date:

Surety Printed Name:

By:

Date:

What a Bid Bond Statement Template Is and When It’s Used

A Bid Bond Statement Template is a standardized document that accompanies a contractor’s bid and shows the surety’s guarantee that the bidder will enter into the contract and provide required performance/payment bonds if awarded. It summarizes principal, surety, obligee, bond amount, bid number, and effective dates, and it provides the obligor with a contractual assurance against bidder default during the tender period. Procurement teams, contracting officers, and surety providers use this statement to verify bonding credentials and to streamline bid evaluation and award decisions.

Why the Bid Bond Statement Template Matters

A clear template reduces bid disputes, provides standardized surety assurances, and helps evaluators confirm compliance quickly. It protects the obligee from bidder withdrawal or failure to bond, and it documents obligations that affect contract award decisions.

Common Users and Their Roles

Each party relies on consistent fields to speed review, reduce ambiguity, and support any post-award bond issuance or claim processes.

Contractors preparing competitive bids and ensuring bonding eligibility for projects.
Surety agents issuing the bid guarantee and confirming bond limits and underwriting details.
Procurement officers and owners verifying bid security, award conditions, and contract compliance.

Stepwise Procedure to Complete and Submit the Statement

Follow these steps in order to prepare a compliant bid bond statement and reduce the risk of disqualification.

01

Prepare Data: Gather principal, surety, obligee, bond amount, and solicitation details.
02

Complete Template: Enter all required fields using the specified formats and dates.
03

Surety Sign-off: Obtain authorized surety signature and date; include underwriting reference.
04

Deliver to Owner: Submit with bid package before the bid deadline using the required delivery method.

Core Elements of a Professional Bid Bond Statement

A professional statement clearly presents obligations, identification, and the surety’s commitment so reviewers can verify compliance without follow-up.

Identification

Full legal names and addresses for principal, surety, and obligee, plus tax or license numbers to support verification and to match procurement records.

Bond Terms

Explicit bond amount, currency, effective and expiration dates, and any conditional language describing when the surety’s obligation attaches or terminates.

Project Reference

Clear project title, bid or solicitation number, and location to link the bond to the exact procurement package being evaluated.

Authorized Signature

Signature block for an authorized surety representative with printed name, title, date, and a contact phone or email for underwriting verification.

Surety Information

Surety licensing or NAIC number and underwriting contact to enable immediate validation of bonding capacity and claims handling procedures.

Limitations & Conditions

Any explicit limitations, subrogation clauses, or conditions under which the bond may be enforced or declared forfeited.

Required Data Elements at a Glance

Bond Amount: Numeric amount with currency

Principal: Full legal name

Surety: Full name and license/NAIC

Obligee: Contracting entity details

Project ID: Solicitation or bid number

Effective Date: MM/DD/YYYY

Common Preparation Pitfalls to Avoid

Incorrect party names or abbreviations that prevent matching to procurement records and delay award processing.
Missing surety license or NAIC number, which prevents online verification and may lead to bid rejection.
Using ambiguous project descriptions that fail to tie the bond to a specific bid package or addendum.
Late surety signatures or undated forms that invalidate the bond at the time of submission.

Where the Completed Statement Goes and Who Reviews It

Understand routing so you deliver the statement to the right recipient before the bid deadline and preserve chain-of-custody evidence.

Attach to Bid: Include the signed statement with the physical or electronic bid submission package.
Owner Review: Procurement team verifies surety and bond amount before shortlisting bids.
Underwriter Check: Owner or agent may contact the surety to confirm underwriting and expiration dates.
Record Retention: Owner retains bond copies per contract file retention policy for audit or claim purposes.

Configuring an Online Completion Workflow

Set up the digital workflow to collect signatures, store audit logs, and route completed statements to stakeholders.

Field	Configuration
Signature Field	Require signer name, title, and date
Authentication	Email link or SMS code for signer
Notifications	Auto-email copies to procurement contact
Archive	Save PDF with audit trail

Digital Signing and Delivery Considerations

Confirm that your signing platform supports audit trails, secure storage, and the authentication level required by the procurement authority.

Audit Trail: Capture IP, timestamps, and signer events
Document Formats: Support PDF and PDF/A exports
Integrations: Connectors for storage and procurement systems

Typical Timing and Deadline Expectations

Bid bond timelines vary by solicitation; use the procurement schedule and surety terms to set internal deadlines for preparation and delivery.

Bid Submission Deadline:

Submit statement by the bid close time specified in solicitation

Bond Effective Date:

Effective on the date listed; ensure it covers award/rescission period

Surety Signature Deadline:

Obtain required surety signature before submission deadline

Return of Bonds:

Unsuccessful bidders typically receive bond release per solicitation terms

Claim Window:

Obligee may file a claim within timeframes stated in bond conditions

Consequences of an Incorrect or Missing Statement

Forfeiture Risk: Possible forfeiture of bid security

Bid Rejection: Immediate disqualification from award

Financial Liability: Principal may face damages or costs

Contract Delay: Award processes can be postponed

Legal Disputes: Potential litigation or arbitration

Tax Withholding: Missing TIN info can trigger backup withholding

Real-World Examples of Template Use

Cases from practice show how clear statements reduce disputes and speed award decisions.

Tim Martin, Martin Properties

Tim’s firm standardized the statement across bids to avoid missing surety data

Resulted in fewer vendor clarifications during review
After adopting a template and consistent surety checks, their award rate improved and administrative back-and-forth decreased substantially.

Dan Rotelli, BIS

BIS integrated the statement into procurement packet templates to match contract language

This ensured bond terms aligned with contract conditions
The integration reduced claim risk and made post-award bond issuance more efficient across multiple projects.

eSignature Vendor Pricing and Features for Executing Bid Bond Statements

Compare core pricing and feature criteria for common eSignature providers when you need to collect signatures, maintain audit trails, and store executed statements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	No	No	No	No
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions and Troubleshooting

Answers to common practical and legal questions about preparing, executing, and submitting a bid bond statement.

Need help? Contact support

Is an electronic signature valid?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention are satisfied.
Do I need notarization?
Not always. Notarization depends on the obligee or state rules; some procurements require notarized acknowledgements while others accept unsigned surety confirmations.
What if names don’t match?
Mismatched legal names between principal and tax records can cause rejection or backup withholding; correct the record before submission to avoid penalties.
How to cancel a bid bond?
Revocation depends on bond terms; many bid bonds run until award or expiration. Contact the surety and review bond conditions to determine cancellation rights.
How long are documents kept?
Retention varies: keep for at least the contract term plus 3 years; IRS records require 3 years (IRC §6501(a)), HIPAA-related records 6 years (45 CFR §164.530(j)).
Technical signing issues
If a signer cannot access the platform, provide an alternative delivery method acceptable to the owner. Ensure the eSignature tool records an audit trail and preserves a PDF copy.

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