Do splash pad contractors need a bid bond?

Bonding requirements protect the owner if the contractor fails to perform. A bid bond (typically 5-10% of the bid amount) is submitted with the proposal and ensures the bidder will sign the contract at their bid price; if they walk, the surety pays the difference between their bid and the next-lowest bid. After award, the contractor posts a performance bond (100% of contract value) guaranteeing project completion and a payment bond (also 100%) guaranteeing payment to subs and suppliers. Some states require additional warranty bonds covering 1-2 year post-completion defects. Most municipal projects mandate all three bonds; private HOA and resort jobs often waive the bid bond but require performance and payment. Bond rates run 0.5-3% of contract value depending on contractor financial strength. Smaller contractors may struggle to bond above $1M, which is why HOAs sometimes split projects into smaller packages or require a bondable general contractor.