Public WorksQuestion 488 of 1605
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:
a.Guarantee that workers and material suppliers will be paid
b.Guarantee that the finished project will meet code
c.Replace the contractor's CSLB license bond on the project
d.Guarantee the bidder will enter into the contract and provide required bonds if awarded the job
Explanation
A bid bond protects the public agency by guaranteeing that, if the contractor is the successful low bidder, it will sign the contract and furnish the required performance and payment bonds. If the bidder backs out, the bond covers the extra cost of awarding to the next bidder.
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Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)