Dictionary of Procurement Terms

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Search Results: 1-1 of 1 result for “Bid Bond”

  • Bid Bond

    An insurance agreement, accompanied by a monetary commitment, by which a third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid. The bidder will furnish bonds in the required amount and if the contract is awarded to the bonded bidder, the bidder will accept the contract as bid, or else the surety will pay a specific amount.