Public works bidding typically requires which of the following?

• A. A verbal bid
• B. No bidding required
• C. A bidding process with bids submitted on a schedule
• D. Bonds

Answer: (D)

Bonds are standard in public works bidding because they provide financial protection to the project owner. A bid bond accompanies the bid and acts as a guarantee that the bidder will enter into the contract if awarded and will provide the required performance and payment bonds. This protects the owner from the costs and delays that can come from a bidder backing out or failing to execute the work after winning the bid. While bidding usually happens on a scheduled deadline and bids must be in writing, the defining requirement that makes public works bidding distinct is the bond. After award, other bonds (like performance and payment bonds) may also be required to further safeguard the project.