Construction Bid Bond

Arizona Construction Bid Bond

Bid security for Arizona public and private invitations

Arizona bid bonds secure a contractor's bid according to the inviting agency's specifications — commonly a percentage of the bid amount.

Overview

What Is a Arizona Construction Bid Bond?

An Arizona construction bid bond guarantees that the bidder will enter the contract and provide required performance and payment bonds if awarded.

Key Provisions
  • Guarantees compliance with Project specifications - A.R.S. public works bidding rules as applicable
  • Protects the obligee named on the Arizona bond form
  • Remains subject to the penal sum and bond conditions
Surety Obligation Overview

What Does This Bond Guarantee?

The surety bond guarantees that the principal will perform the duties required under Project specifications - A.R.S. public works bidding rules as applicable up to the penal sum.

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Project owner or public agency named in the bid documents
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.

When a claim may arise

A claim may arise if the principal fails to comply with the bonded Arizona obligation or causes covered loss to the obligee or protected parties.

If a claim is valid

If a claim is valid, the surety may pay up to the bond penalty according to the bond terms; the principal remains liable to reimburse the surety.

Scope of the Obligation
  • Comply with Project specifications - A.R.S. public works bidding rules as applicable
  • Satisfy Project owner or public agency named in the bid documents filing conditions
  • Maintain the bond for the required term
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Contractors bidding Arizona public works and many private projects that require bid security need this bond with the bid package.

Who Is Required to File
  • Applicants required by Inviting Arizona public agency or project owner
  • Arizona businesses renewing or expanding licensed activity
  • Out-of-state firms filing into Arizona markets
Requirements

What You Need to Apply

Match the invitation-to-bid percentage, form, and obligee, then attach the bid bond to your Arizona bid submission.

Required Documentation
  1. Legal entity name matching the license or filing
  2. Bond amount: Typically 5% to 10% of the bid amount as required by the inviting Arizona agency or owner
  3. Arizona obligee form or statute citation
  4. Owner or officer identification for underwriting
Filing

How this filing works

  1. 01

    Confirm the Arizona requirement

    Share your license type, court order, or obligee form and the exact penal sum required by Inviting Arizona public agency or project owner.

  2. 02

    Underwrite and price

    We review credit and filing details, then quote premium options through licensed surety markets.

  3. 03

    Issue and file

    Once approved, we issue the bond for delivery to Project owner or public agency named in the bid documents or for your Arizona filing package.

FAQ

Frequently Asked Questions

What is the required amount for an Arizona construction bid bond?

The amount is Typically 5% to 10% of the bid amount as required by the inviting Arizona agency or owner, as set under Project specifications - A.R.S. public works bidding rules as applicable and confirmed with Inviting Arizona public agency or project owner.

Who is the obligee on an Arizona construction bid bond?

The obligee is typically Project owner or public agency named in the bid documents. Always match the exact name on the Arizona form.

How long does it take to get the bond?

Many Arizona filings can be underwritten the same day when documents and credit are complete; complex amounts may take longer.

Does bad credit prevent approval?

Not always. Premium and collateral options vary by credit and bond size — ask for markets that still write the risk.

How do I renew the bond?

Most bonds renew on the term shown (1 Year). Keep continuity so your Arizona license or filing does not lapse.

Next step

Ready to file this bond?

We’ll match the requirement and route the application.

Apply for this bond

Or call (877) 477-7578