Contracts & ExecutionQuestion 208 of 690
A contractor's bid bond on a public project primarily guarantees that:
a.The project will be free of defects for 10 years
b.All subcontractors will be paid within 7 days
c.The owner will release retention promptly
d.If awarded the contract, the bidder will enter into the contract and provide required bonds
Explanation
A bid bond guarantees that a successful bidder will honor its bid by signing the contract and furnishing the required performance and payment bonds; if it refuses, the bond covers the owner's reletting costs.
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