Bid Bond - 262

ConsensusDocs 262 is a standard bid bond form designed to secure and formalize a contractor’s bid commitment on a construction project. Developed for compatibility with the ConsensusDocs 200 and ConsensusDocs 500 series agreements, this one-page document ensures that the selected contractor—also referred to as the Constructor, general contractor, builder, design-bid-builder, or construction manager—will enter into the contract if awarded and provide the required performance and payment bonds.

This document was collaboratively developed and endorsed by two of the industry’s most respected authorities: the Surety & Fidelity Association of America (SFAA) and the National Association of Surety Bond Producers (NASBP). Their endorsement assures users that the document reflects legal best practices and widely accepted construction standards.

The ConsensusDocs 262 bid bond establishes the surety’s financial guarantee to the Owner—the obligee of the bond—that if the successful bidder fails to execute the contract or provide required bonds, the surety will compensate the Owner up to the bond’s penal sum. This amount is typically a percentage of the bid and is clearly defined within the document to ensure transparency and certainty.

Key Features:

• Endorsed by SFAA and NASBP
• Compatible with ConsensusDocs 200 and 500 agreements
• Protects Owners by ensuring contractor bid validity
• Establishes maximum surety liability (bond sum/penal sum)
• Short, administrative-friendly one-page format

The ConsensusDocs 262 provides essential financial protection to project owners during the bidding process. It discourages frivolous or unqualified bids by requiring a financial commitment from the contractor and their surety, ensuring that only serious, capable bidders participate. This minimizes the risk of delays and costs associated with bid withdrawal or default after award.

Whether for public or private sector construction, this standardized bid bond form helps create a reliable, transparent bidding environment and reinforces trust among project stakeholders.