A bid bond is a type of surety bond that guarantees a contractor will honor their bid and enter into a contract if awarded a project. Commonly required on public works and commercial construction projects, bid bonds help protect project owners from financial loss if a contractor backs out after winning a bid. This guide explains how bid bonds work, who needs them, how much they cost, and how contractors can qualify.

A contractor license is legal authorization that allows an individual or business to perform certain construction, repair, or specialty trade work. Licensing requirements vary by state but often include experience, exams, insurance, and bonding. This beginner’s guide explains what a contractor license is, who needs one, how to get licensed, and why it’s important for contractors and consumers.