What does BID BOND mean?

BID BOND meaning in Law Dictionary

whenever a 3rd guaranty is submitted with a bid. That is a contracting training.

BID BOND meaning in Insurance Dictionary

Used in conjunction with construction bidding processes. The relationship will act as a guarantee that, if granted the contract on the basis of the bid presented, the specialist will come into a contract to perform the work at price quoted. If the contractor decreases to come into a contract to execute the job during the agreed-upon cost, the quote relationship will reimburse the obligee (owner or upper-tier contractor) the difference between the defaulting specialist's quote together with next least expensive quote, to the penal amount of the bond.