When required, bid bonds are an essential aspect to a proper bid. Under FAR 52.228-1, they secure the liability of a surety to the government by providing funds to cover the excess costs of awarding to the next eligible bidder if the successful bidder defaults by failing to fulfill these obligations.

There is a standard form for bid bonds. Though it’s not required, using the standard form is probably the safest bet to avoid possible rejection of a bid, as one contractor learned the hard way.