A contractor bidding on a city public works contract is asked to submit a bid bond. The primary purpose of a bid bond is to:
Explanation
A bid bond protects the public agency against a bidder that wins and then walks away: it guarantees the bidder will execute the contract and furnish the payment and performance bonds, and the surety covers the extra cost of going to the next bidder. Paying workers and suppliers is the payment bond's job under Civil Code §9550. Code compliance is enforced by inspection and by the performance bond's completion promise, not by the bid bond. The CSLB licence bond is a condition of licensure and is never displaced by a project bond.
Law Reference: Public Contract Code §20170; Civil Code §9550This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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