Who is responsible for a bid bond if it’s over the amount it was good for?
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Who is responsible for a bid bond if it’s over the amount it was good for?
the owner accepted it and issued a contract but now a payment and performance bond is not in the cards? Example, bid bond was good for 250K but project kept getting larger due to addendums. Bid was for 500k and was accepted and a contract was issued. 2nd bidder was 539K. Bid bond was for 5%.
Asked on April 1, 2013 under Business Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Under the basic tenets of contracts if the bid bond amount has been exceeded by the developer, the developer is on the hook for any excess over the bond in order to get the project completed. Based upon what you have written about, you should consult with an attorney with experience in contract law.
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