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

A Bid Bond that has a maximum penal sum written on the bid bond instead of a percentage of the bid. Capping a bid bond is rare but allows the surety bond company to prevent a Principal from bidding over a specified amount. The Bid Bond will usually contain language that is a percentage of the Principal's Bid, "not to exceed" a specified dollar figure.