On a public works project, a 'bid bond' submitted with a contractor's bid primarily guarantees that:
Explanation
A bid bond guarantees only that the successful bidder will execute the contract and post the payment and performance bonds the call for bids requires; if it walks away, the surety covers the agency's cost of going to the next bidder. Freedom from defects is what a maintenance or warranty bond promises. Prevailing wage payment is backed by the payment bond and by §1726 withholding, not by the bid bond. DIR registration of listed subs is verified from the bid itself, and no bond guarantees it.
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 →
Practice all 1632 questions free — no signup required.
Own the complete CSLB Law & Business guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Certified payroll records on a California public works project must generally be made available for inspection and, when requested, furnished to:
- A subcontractor that is NOT registered with the DIR is listed on a bid for a public works project subject to prevailing wage. The likely consequence is that:
- When a contractor must pay 'per diem wages' at the prevailing rate, this generally includes:
- Failure to comply with apprenticeship requirements on a covered public works project can result in:
- 'Debarment' in the public works context means a contractor is:
- If the Labor Commissioner issues a Civil Wage and Penalty Assessment for prevailing wage violations, the contractor generally may:
Last reviewed: · editorial process