Polk County MN requested bids for the supply of 3 SUV’s. They received one bid that met all the requirements of the RFP except one, the bid did not include the required 5% bid bond. Obtaining a bid bond for the supply of three vehicles would be a fairly easy task to accomplish. Bonding is just not something businesses are used to obtaining unless the business is doing public construction. As the result of the great recession, there has been a definite uptick in bonding requirements for supply and services to municipalities. The surety industry has responded to this increase in demand with many surety bond carriers willing to entertain non ‘bricks and sticks” performance bond requests.
The surety bond companies pre-qualify the company that is supplying the goods or services. If the company cannot meet the terms of the accepted RFP or ensuing contract, the bond company stands ready to complete the contract at no additional cost to the tax payer.