Where is a bid bond typically obtained from?

A bid bond is typically obtained from a surety agency, which can include banks or insurance companies. These institutions provide the necessary monetary guarantee that the contractor bidding on a project will honor their bid, follow through with the project if awarded, and comply with the requirements outlined in the bid. The surety agency assesses the contractor's creditworthiness and ability to complete the project before issuing the bond.

Obtaining a bid bond through a surety agency ensures that a professional underwriting process is in place, which assesses risk and guarantees that the project will be completed to the required standard. This is crucial for project owners to have confidence in the bidding process and the contractors they are considering. Other options, such as a contractor's office or a government agency, do not typically provide the specialized service of issuing surety bonds, while real estate firms are not in the business of underwriting or issuing bonds related to construction contracts.