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If you use a bid bond and do not get awarded the contract do you get your money back?
Wiki User
∙ 14y ago
No. The bid bond performed its function - allowing you to bid. This is why bid bonds are inexpensive. Had you been awarded the contract you would then need another bond, a "performance bond". This bond would be an extension of the bid bond and be priced equivalent to the value of the project. Yes. The above is incorrect atleast in the architecture/construction industry. Architectural handbook of professional practice 14 edition as reference. It is simply to insure a bidders intent to enter into contract if awarded the contract, and protect the owner if the bidder withdraws their bid
Wiki User
∙ 14y ago
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Why issue bonds?
A bond is a formal contract by the government to pay back money you loan to them.
What type of contract do you need to get money for your damaged property?
Insurance contract with an insurance company Indemnity bond
Is bid Bond refundable and when?
The bid Bond is refundable to losers when the contract is awarded. It is a bank guarantee of a specified value issued by the guarantee to the seller such that he cannot withdraw his bid from the tendering process.
What is contractual bond?
A "contract" bond is a guarantee that has been issued by an insurance company. The contract bond guarantees that the "contractor" will perform a service according to the specifics of a contract.
Do you get the performance bond money back?
No, the cost of a requested performance bond should be itemized in the proposal.
What is mean by security deposit and earnest money?
A bid bond is an indemnity bond where it waives the right of the offeror to go back on his proposal once it has been given to offeree. Also through this bond a public agency is protected in case the bidder withdraws his bid before contest or declines to enter into contract on its acceptance.It must be distinguished from earnest money which is for the purpose of showing seriousness to participate in the bid. It is commonly called token money.
You got some bail bond money back does that mean your case has been handled?
I got 500 dolars back on a 2500 dollar bond
What type of bond is a junk bond?
A junk bond is one which is of very high risk. This type of bond will mean that a person may never get the money back which they invest into the bond itself.
Is there any difference between contract and a bond?
Yes, there is a difference between a contract and a bond. A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship, while a bond is a financial instrument that represents a loan made by an investor to a borrower, typically a corporation or government. Contracts involve the exchange of goods, services, or promises, while bonds involve the exchange of money with a promise to repay the principal amount plus interest at a later date.
What is a payment bond and a Performance bond?
Performance bonds protect the obligee (obligee is the entity requiring the bond)Requiring a performance and payment bond will insure that the project will be completedIf the principal defaults in its performance set forth in the contract to the obligee and the contractor is unable to successfully perform the job, the surety assumes the contractor's responsibilities and ensures that the project is completed. Below are the four types of contract bonds that may be required1. Bid Bond which guarantees that the bidder on a contract will pierce into the contract and equip the mandatory payment along with performance bonds. 2. Payment Bond which guarantees payment from the contractor of money to persons who furnish labor, materials equipment and also supplies for use in the performance of the contract. 3. Performance Bond which warranties that the contractor will hold out the contract in pact with its terms. 4. Ancillary Bonds which are auxiliary as well as crucial to the performance of the contract. Source http://www.integritybonds.com
Who is the obligee in a bail bond?
The bailbondsman. An obligee is someone owed an act or deed, such as being payed money on a promissory note or contract
What is the status as an indemnitor to a surety agreement?
The indemnitor is the one that agrees to repay all costs back to the surety should the bond goes into default. The bond goes into default if you fail to perform as agreed in a contract. Since the suerty knows where all your assets are, i highly recommend that the contract be completed according to the contract that you signed.
