What type of bond assures that a contractor will accept a job if it is offered?

A bid bond is a type of surety bond that provides assurance to the project owner that the contractor will adhere to the terms of the bid. When a contractor submits a bid for a project, the bid bond guarantees that if the contractor's proposal is accepted, they will enter into a contract and complete the work at the bid price. This bond serves as a safety net for the project owner, protecting them against the financial loss that can occur if a contractor decides not to fulfill the contract after being awarded the job.

In contrast, the other types of bonds serve different purposes. A payment bond ensures that subcontractors and suppliers will be paid for their work and materials, while a performance bond guarantees that a contractor will complete the project according to the contract's specifications. A completion bond typically ensures that a project will be finished and often relates to projects that are financed. Understanding these distinctions helps clarify why the bid bond is specifically about accepting a job offer.