COVID-19 Update: Apply Online - Fast Service 
« Back to Glossary Index

The percentage of the Principal’s bid that the bid bond is required to cover. For public bids, 5% or 10% is common but private contracts can require any amount. Also referred to as the bid penalty. 

An example would be a 5% Bid Percentage. If a Principal Contractor bids, $1,000,000, the bid bond penalty would be $50,000.