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A type of contract surety bond that guarantees that a bidder will enter into a contract and provide Performance and Payment Bonds on a project if they are the low, selected bidder. A Bid Bond is a three party agreement between a Principal (the bidder), an Obligee (the project owner or contractor benefitting from the bond), and a Surety Bond Company (the bond company guaranteeing the bidder's obligation). More information on Bid Bonds can be found here.