Bid Bond Question-

Wensdy

i don't know much about bid bonds. i am bidding on a project which is a direct bid to the general and all crafts are required to have a bid bond.
my insurance company is having a hard time with companies not being able to handle the size of the bond.
is there a way you can bond yourself? i could write a check for the amount myself. why all hassle with bid bonds? i don't understand the risk.

rbsremodeling

Where are you located?

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Wensdy

Location: Minnesota and north dakota

Kgmz

Yes there is a way for you to self bond. You will have to get the paperwork and then have the bank sign it and agree to hold your money until the bond is satisfied.

We did this last year with a $375,000 bond for the county. This was better for us since we had the cash, and the bank and county allowed us to keep the money in CD's so we still collected the interest and didn't have to pay a bond fee. A win win for us.

Wensdy

can you self-bond without the permisson of the owner of the project? there's a lot of work involved with bid bonds. is this legal in ND and MN? and can you direct me to a link stating it?