Are bid or contract security bonds required?

November 3, 2023

As required by State of Maryland law, a performance bond and a labor and material payment bond, each in the amount of 100% of the contract amount, are required for any construction contract in excess of $100,000. The successful bidder must deliver the executed performance and payment bonds, together with all require certificates of insurance, to the Commission within 10 calendar days after Notice of Intent to award the contract. If the successful bidders fail to deliver these items within that period, the Commission will reject the bid and the bidder will forfeit the bid guaranty.

Bonds are sometimes required for smaller projects at the discretion of the Commission’s Secretary-Treasurer. Bid documents will clearly identify whether bonds are required. The Fair Practice Office has information regarding bonding and financial assistance referrals. For more information please call (301) 454-1609.