Bid bond

{
  "id": "MLC-T-INS-000554",
  "term": "Bid bond",
  "field": "Insurance and risk management",
  "definition": "A type of surety bond that provides financial assurance to a project owner that a contractor submitting a bid will enter into the contract if their bid is accepted. If the contractor fails to sign the contract or provide required performance and payment bonds, the bid bond compensates the owner for the difference between the defaulting bid and the next lowest bid. It guarantees the integrity of the bidding process.",
  "url": "https://mlchart.com/terminology/insurance/bid-bond/"
}