Which bond is submitted with a bid to guarantee the contractor can bond the project?

A bid bond is a specific type of surety bond that is submitted alongside a contractor's bid for a project. Its primary function is to guarantee that the contractor can enter into a contract if selected and that they will provide the required performance and payment bonds upon contract award. If the contractor fails to follow through, the bid bond protects the project owner by providing a financial assurance, typically covering the difference in cost if the project must be rebid to find another contractor.

This bond serves as a commitment from the contractor that they are serious about their bid and have the financial and legal ability to take on the project. Other types of bonds, such as performance and subcontractor bonds, play different roles in the construction process and do not specifically serve to guarantee the contractor's ability to bond the project at the bid stage.