**KNOW ALL MEN BY THESE PRESENTS,** that we, [Name of Principal], a [State of Incorporation/Organization] corporation (hereinafter “Principal”), as Principal, and [Name of Surety], a [State of Incorporation] corporation, authorized to transact business in the State of [State] (hereinafter "Surety"), as Surety, are held and firmly bound unto [Name of Obligee] (hereinafter "Obligee"), in the sum of ______________ Dollars ($_________), lawful money of the United States of America, for the payment of which sum, well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
**WHEREAS**, Principal has submitted a bid for [Project Name and Location/Description] (hereinafter the "Project"), pursuant to the terms of a certain [Solicitation Description/Number], dated [Date] (hereinafter "Solicitation").
**NOW, THEREFORE, the condition of this obligation is such that if within [Number] ([##]) days after the date specified in the Solicitation for bid opening,**
Principal's bid is accepted by Obligee; and Principal furnishes the required payment and performance bonds, each in full form and content, and with a surety acceptable to Obligee; then this obligation shall be void and of no effect; otherwise to remain in full force and virtue.Surety, for value received, hereby waives notice of any extension of time for acceptance of bids on the Project that may be granted by Principal. Notwithstanding the foregoing, Principal and Surety agree to an automatic extension of this Bid Bond equal to but not to exceed sixty (60) days if a request for extension of time in which to furnish the required payment and performance bond(s) is received from Obligee prior to the expiration hereof, provided such written request must set forth the need for the extension.
Surety agrees that its obligations under this Bid Bond shall be governed by the laws of the State of [State]. If legal action is necessary to collect on this Bid Bond in the event of a default by the Principal, the venue for any such action shall be in the appropriate court located in [City, State].
The parties agree that the sum set forth above as the penal sum of this Bid Bond is not a penalty but, rather, is [Obligee’s] best estimate, after due inquiry and in good faith, of [Obligee’s] probable actual damages that would result from the Principal’s failure to execute and deliver the required Payment Bond and Performance bond, and commence work on the Project in accordance with the Contract Documents. [Obligee] acknowledges that actual damages arising out of Principal's failure to execute and deliver such Payment and Performance Bonds will be difficult to ascertain. It is understood and agreed that if the Principal fails to execute and deliver such Payment and Performance Bonds, the Surety’s liability to Obligee under this Bid Bond will be limited to such actual damages as Obligee may be able to establish, not to exceed the foregoing penal sum which is agreed upon as being the minimum amount of liquidated damages that would be sustained by Obligee by reason of Principal’s breach; provided, however, that nothing in this Paragraph shall be construed as permitting the Principal to withhold from the Obligee any amounts properly due and payable to the Obligee pursuant to the terms and conditions of the Construction Contract.
The Surety and the Principal hereby represent and certify that the foregoing instrument is not prohibited by, nor in violation of, the antitrust laws of the United States or of any state having jurisdiction and that the signing, delivery, and performance of this instrument is neither made nor given pursuant to, nor as a result of, any contract, combination, conspiracy, or agreement, between or among bidders or prospective bidders, which would restrain or tend to restrain free and open competition in the bidding. Any such agreement is hereby expressly denied.
**IN WITNESS WHEREOF**, Principal has executed this instrument as of the ______ day of ______________, ______ and Surety has caused this instrument to be executed on its behalf this ______ day of ______________, ______.
**[Principal]**
By: ______________________________________
Name: _____________________________________
Title: ____________________________________
**(Corporate Seal)**
**[Surety]**
By: ______________________________________
Name: _____________________________________
Title: ____________________________________
**(Attestation and Corporate Seal)**
**(If Surety is a corporation, the following must be completed.)**
STATE OF __________________________ )
COUNTY OF _______________________ ) ss:On this ______ day of ____________, ______ , before me appeared _____________________________________, to me personally known, who, being by me duly sworn, did say that he/she is ____________________________________ of [Surety] , the corporation that executed the within and foregoing instrument; that he/she knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation; and that he/she signed his/her name thereto by like order.
_____________________________________
Notary Public
My commission expires:_______________
