Bid Bonds in Georgia: The 2026 Contractor's Guide

What the law actually requires, what House Bill 137 changed on July 1, 2025, and how sureties decide whether to back you.

Frank Quinn, Agency Principal, Quinn Alliance LLC
Georgia Insurance License #244699 | Last reviewed August 2026

If you are bidding public work in Georgia, the bid bond is the first gate you have to clear. Miss it and your bid is non-responsive before anyone reads your number. Clear it and you have started building the surety relationship that determines how much work you can carry for the next five years.

What a bid bond actually guarantees

A bid bond is a three-party agreement. You are the principal. The public owner is the obligee. The surety company is the third party guaranteeing your promise.

The promise is narrow and specific: if the owner awards you the contract, you will sign it at your bid price and deliver the performance and payment bonds the contract requires.

That is it. A bid bond does not guarantee your workmanship, your schedule, or your subcontractor payments. Those are separate bonds. The bid bond exists to stop contractors from throwing in a lowball number, winning, then walking when they realize the math does not work.

What happens if you win and walk

Your surety becomes liable to the owner, generally for the difference between your bid and what the owner has to pay the next contractor it can reasonably contract with, capped at the penal sum of the bond. The exact measure of damages comes from the bond form itself, not from statute. The AIA A310 form, which most Georgia obligees accept, states this expressly.

Then the surety comes after you.

Every bond you sign includes a general indemnity agreement giving the surety the right to recover its loss from your company, and in almost every case from you and your spouse personally.

A surety bond is not insurance that absorbs your loss. It is credit that guarantees your performance to someone else, and you repay every dollar the surety pays out.

Georgia's legal framework: two parallel tracks

Georgia's public works bonding rules are commonly called the state's "Little Miller Act." There is no single statute by that name. There are two parallel sets of rules, and which one applies depends entirely on who is letting the project.

Federal work in Georgia, including Corps of Engineers and VA projects, is governed by the federal Miller Act (40 U.S.C. §§ 3131 to 3134), not by either of these. Georgia Department of Transportation work has its own rules under Title 32.

Bid bond requirements: state projects

Threshold, § 13-10-20(a). Bid bonds are required on all state public works construction contracts with estimated bids or proposals over $100,000. The state may require one on smaller projects at its discretion.

Amount. Not less than 5 percent of the total amount payable under the terms of the contract. § 13-10-20(d)

Consequence of omission. No bid is valid for any purpose without a proper bid bond or an approved alternative. A missing bid bond is a material deviation and the bid is non-responsive.

Alternatives accepted. Cashier's check, certified check, or cash for not less than 5 percent. Where the required bid bond does not exceed $300,000, the state may in its sole discretion accept an irrevocable letter of credit from a qualifying bank or savings and loan. § 13-10-21

Bid bond requirements: county, city, and school board projects

This is where the 2025 change matters, and where most published guidance gets it wrong.

The statute still says $100,000. § 36-91-50(a) requires bid bonds on all public works construction contracts "subject to the requirements of this article" with estimated bids or proposals over $100,000.

But the chapter no longer reaches most projects under $250,000. House Bill 137, signed in 2025 and effective July 1, 2025, amended § 36-91-22(a) so that the requirements of Chapter 91 do not apply to public works construction projects when the same can be performed at a cost of less than $250,000, up from $100,000.

Read those together. Bid bonds attach to contracts subject to Chapter 91. Chapter 91 does not reach local projects under $250,000. So the practical statutory floor for a mandatory local bid bond is now $250,000, even though the text of § 36-91-50 was never touched.

Why this distinction matters to you. HB 137 did not amend § 36-91-50, § 36-91-70, or § 36-91-90. It did not touch the state thresholds in Title 13 either. Anyone telling you "Georgia raised the bond threshold to $250,000" is giving you a half-answer that will get you into trouble on a state project, where $100,000 still governs.

Amount. Not less than 5 percent of the total amount payable under the terms of the contract. § 36-91-50(d)

Alternatives accepted. Cashier's check, certified check, or cash. Where the required bid bond does not exceed $750,000, the governmental entity may in its sole discretion accept an irrevocable letter of credit. § 36-91-51

One caution. Below $250,000, a local government is no longer required to demand a bid bond, but it is still free to demand one in its solicitation documents. Read the invitation to bid. The statute sets the floor; the owner sets the requirement. Plenty of Georgia counties still require bid security on smaller work as a matter of policy.

Bidding a project right now? Start your bond application online. Bid bonds are typically issued at no premium, and small bonds can often be approved from a short application. Apply for a bond or call Frank directly at (470) 648-6767.

The 60-day rule and when you can withdraw a bid

Contractors ask about this more than almost anything else, and most bond guides skip it entirely.

On competitive sealed bids, your bid may not be revoked or withdrawn until 60 days after the time set for bid opening. After 60 days it ceases to be valid unless you give the owner written notice before the expiration date extending it for a period the owner specifies. § 36-91-50(b), § 13-10-20(b)

On competitive sealed proposals, the owner must tell offerors in the RFP how long proposals must be honored. If you are not selected within 60 days and the owner determines you are unlikely to be selected, you are released. § 36-91-50(c), § 13-10-20(c)

There is a separate statutory path for withdrawing a bid because of a calculation error, with its own conditions and proof requirements. §§ 36-91-52, 36-91-53; §§ 13-10-22, 13-10-23

If you find a material error in a submitted bid, act immediately and talk to construction counsel the same day. The error-withdrawal path has hard requirements and it closes fast.

Performance and payment bonds: what comes next

Winning the bid does not retire the bid bond obligation. That obligation is discharged when you execute the contract and deliver the required performance and payment bonds. It is a handoff, not a replacement.

Performance bond

Guarantees you will complete the contract according to its terms.

• State: required on contracts with an estimated amount greater than $100,000. § 13-10-40
• Local: required under § 36-91-70, subject to the same $250,000 Chapter 91 reach described above.
• Amount: at least the total amount payable under the contract, and it must be increased as the contract amount increases. Change orders that raise the contract price require a corresponding bond increase.

Payment bond

This is the one contractors overlook, and it is not optional.

• State: § 13-10-60. Local: § 36-91-90.
• Amount: at least the total contract amount, increased as the contract amount increases.
• Why it exists: you generally cannot file a mechanic's lien against publicly owned property in Georgia. The payment bond is the substitute security for subcontractors, laborers, and material suppliers.

If your project triggers a performance bond, budget for the payment bond too. They are almost always written together and priced as a package.

Who can write the bond: surety qualification

Georgia does not let you use any surety you like. The rule is more specific than most summaries suggest.

Approval and filing, § 13-10-2 and § 36-91-40. The bond must be approved and filed with the treasurer of the obligee named in the bond. For a bid bond, approval must be obtained prior to acceptance of the bid. For a performance or payment bond, approval must be obtained prior to execution of the contract.

The surety standard, stated precisely

The default is a surety company holding a current certificate of authority to transact surety business in Georgia from the Commissioner of Insurance. If the named surety is not so authorized, then at the obligee's option the bond will not be approved and filed unless that surety appears on the U.S. Department of the Treasury's list of approved bond sureties, published annually as Circular 570 and administered by the Bureau of the Fiscal Service.

This is not an either/or menu you get to choose from. Circular 570 is a fallback the obligee may permit, not a substitute you can elect. Verify with the specific owner before you submit.

Ongoing obligation

If the surety becomes insolvent, loses its certificate of authority, or the bonds otherwise become insufficient, the obligee may require you to strengthen the bond or furnish a new or additional bond within ten days. If you do not, work stops and the owner may terminate and complete the contract at your expense and your surety's.

How sureties actually underwrite you

Surety is credit underwriting, not insurance rating. The surety is not pricing the odds you fail. It is deciding whether you will fail, and if you do, whether it can recover what it pays out. That is why the process feels more like a bank loan than an insurance quote.

Capital

• Business financial statements. Under roughly $500,000 in bond need, internally prepared or CPA-compiled statements are often sufficient. Above that, expect a CPA review. For larger programs, a full audit on the percentage-of-completion method.
• Working capital is the first number underwriters look at. A common rule of thumb is that available working capital supports roughly ten to twenty times its value in bonded backlog, though this varies by surety and trade.
• Bank line of credit, with the limit and current balance.
• Personal financial statements from every owner at 10 percent or more.
• Business and personal tax returns, typically three years.

Capacity

• Work-in-progress schedule showing contract price, costs to date, estimated cost to complete, billings, and percent complete. Have this current. A stale or sloppy WIP schedule kills more submissions than weak financials do.
• Completed jobs history, especially projects comparable in size and scope to the one you are bidding.
• Equipment schedule, key personnel, and project management depth.
• Honest assessment of your largest completed job. Sureties are cautious about a contractor jumping from $400,000 projects to a $3 million bid.

Character

• Business and personal credit. Personal FICO carries real weight on small and emerging accounts.
• Reference checks with owners, general contractors, subcontractors, and suppliers.
• Licensing standing, including the Georgia State Licensing Board for Residential and General Contractors and the applicable trade boards.
• Claims and litigation history, and any prior surety losses.

On corporate-only indemnity. Owners often ask whether they can bond without personal indemnity. On small and mid-market accounts the answer is almost always no. Corporate-only indemnity is available on established programs with strong audited financials and a long loss-free history. Do not treat it as a starting expectation.

What bonds cost in Georgia

Bid bonds are typically issued at no premium. Most sureties write them at no charge as part of establishing the relationship, on the expectation of the final bond premium if you win. Some agencies charge a nominal issuance fee. If someone quotes you a percentage premium for a bid bond, ask why.

Performance and payment bonds are priced as a rate per thousand of contract price, commonly in the range of roughly 0.5 percent to 3 percent, depending on credit strength, contract size, and program history. Rates are usually tiered, so the rate on the first $100,000 of contract value is higher than the rate on the next increment.

The practical point: the difference between a 3 percent rate and a 1 percent rate on a $1 million contract is $20,000. On a thin-margin public job that is the difference between a profitable year and a flat one. Bond capacity and pricing are worth managing deliberately, not accepting as a fixed cost.

If you cannot get bonded yet

New contractors, contractors with credit damage, and contractors trying to step up in project size get declined. That is normal, and there are real paths forward.

The SBA Surety Bond Guarantee Program. The SBA guarantees bid, performance, payment, and ancillary bonds issued by participating surety companies, which lets sureties write small businesses that would not meet standard qualifications. Current statutory contract limits are $9 million for all projects and $14 million on federal contracts where a contracting officer certifies the guarantee is necessary. The SBA also offers QuickApp, a simplified application for contracts up to $500,000.

Funds control or escrow. Some sureties will write an account they would otherwise decline if project funds run through a third-party disbursement service.

Collateral. An irrevocable letter of credit or cash collateral can bridge a capacity gap, and is often released as the job completes and the account seasons.

Build the file before you need it. The single best thing you can do is establish the surety relationship before you find the job you want to bid. Sureties do not underwrite well under a 72-hour deadline.

Bid bond application checklist

Have these assembled before you call anyone.

• Completed contractor questionnaire
• Business financial statements, most recent fiscal year end plus current interim
• Work-in-progress and completed jobs schedules, current
• Personal financial statements from all owners at 10 percent or more
• Three years business tax returns
• Three years personal tax returns for all indemnitors
• Bank line of credit letter showing limit and balance
• Résumés for owners and key project personnel
• Copy of the bid solicitation, plans, and specifications
• Bid due date and time, bid amount, and required bond percentage
• Exact legal name of the obligee as it appears in the solicitation
• Current contractor license documentation

That last obligee item causes more last-minute problems than anything else on the list. "Cobb County" and "Cobb County Board of Commissioners" are not interchangeable on a bond form.

Questions contractors ask

Is a bid bond required on Georgia private projects?

No statute requires it. Private owners and general contractors frequently require bid security by contract. If the solicitation asks for it, you need it, regardless of what the code says.

Can I use a cashier's check instead of a bid bond?

Yes. Georgia permits cash, a cashier's check, or a certified check in the required amount, and letters of credit at the obligee's sole discretion up to $750,000 on local projects and $300,000 on state projects. The tradeoff is that cash security ties up working capital for the entire bid evaluation period, capital you cannot use to mobilize. A bond typically costs nothing and preserves liquidity.

How long does it take to get a bid bond?

For an established account with a surety, same day or next day. For a first-time submission with complete financials, typically three to ten business days. For an incomplete submission, indefinitely. Start early.

Does a bid bond expire?

The bond is tied to the bid, and the bid's validity period is governed by the 60-day rule and any extension you grant in writing. If the award drags past that window, coordinate with your agent and your surety.

What if the contract price increases through change orders?

Georgia law requires the performance and payment bonds to be increased as the contract amount increases. Notify your agent when a significant change order is issued. Do not let bond penal sums drift below the contract price.

Do I need a payment bond if I have a performance bond?

On Georgia public work, yes. They are separate statutory requirements at 100 percent of contract value each. They are commonly issued as a single instrument, but they remain two distinct obligations.

Did HB 137 change the state bond threshold?

No. HB 137 raised local public works thresholds by amending the Chapter 91 exemption in § 36-91-22. State thresholds under Title 13 remain at $100,000.

My credit is poor. Am I out of options?

Not necessarily. The SBA Surety Bond Guarantee Program exists specifically for accounts that do not meet standard surety qualifications. Collateral and funds control are also available. What matters is presenting a complete, honest file rather than hoping the credit pull comes back better than you expect.

Get your Georgia bid or performance bond

Quinn Alliance LLC is a Georgia commercial insurance agency built around contractor trades. We work with tree service, roofing, electrical, plumbing, HVAC, grading, and general contractors across the state, and we place surety through a platform with access to a broad panel of admitted surety markets. Public work also means general liability, workers' comp and auto certificates on day one; see Georgia general contractor insurance.

Apply online. Bid bonds are typically issued at no premium. Small bonds can often be approved quickly from a short application. Larger contract programs go through full financial underwriting, and we will tell you upfront what your file needs. Start your bond application. On a first bond, a five-minute call is usually faster: (470) 648-6767.

Frank Quinn, Agency Principal, Quinn Alliance LLC. [email protected]. Georgia License #244699.

Sources

Primary law

• O.C.G.A. § 13-10-20, bid bonds, state public works
• O.C.G.A. § 13-10-21, alternatives to bid bond, state
• O.C.G.A. § 13-10-40, performance bonds, state
• O.C.G.A. § 13-10-2, approval and filing of bonds
• O.C.G.A. § 36-91-50, projects requiring bid bonds, local
• O.C.G.A. § 36-91-51, cash and letters of credit in lieu of bid bonds
• O.C.G.A. § 36-91-70, performance bonds, local
• O.C.G.A. § 36-91-90, payment bonds, local
• Georgia House Bill 137 (2025), full enrolled text

Agencies and programs

• SBA Office of Surety Guarantees
• SBA increased Surety Bond Guarantee contract limits
• Georgia Office of Insurance and Safety Fire Commissioner
• Georgia State Licensing Board for Residential and General Contractors
• Georgia Procurement Registry

Commentary

• Cobb Law Group, analysis of HB 137
• ACCG, Guidebook to Local Government Construction Projects

This article is general information about Georgia surety bonding for commercial contractors. It is not legal advice and does not create an attorney-client or agent-client relationship. Statutory thresholds and requirements change, and how they apply depends on your specific project and the terms of the solicitation. Verify current requirements with the contracting public entity and consult a Georgia construction attorney before making bidding or bonding decisions. Bond availability, terms, and pricing are subject to surety underwriting approval. Quinn Alliance LLC is a licensed Georgia insurance producer and is not a surety company.