Surety bonds • Ohio
Ohio Public Improvement Bonds (ORC 153.54): Bid Guaranty and Contract Bonds
Under Ohio Revised Code § 153.54, bidders on public improvements must file a bid guaranty: a bond for the full bid amount, or a certified check, cashier’s check, or letter of credit for 10% of the bid. The winning bidder then files a contract bond for the full contract amount, protecting the public owner and the subcontractors, suppliers, and laborers on the job.
This guide covers the bid guaranty options, the contract bond, who it protects, and cost. Blake Insurance Group is an independent agency and does not give legal advice; a licensed agent can help contractors set up bonding.
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Bid guaranty options
| Option | Amount | If the bidder backs out |
|---|---|---|
| Bid guaranty bond | Full amount of the bid | Liable for the difference between the bid and the next-lowest bid, or 10% of the bond, whichever is less |
| Certified check, cashier’s check, or letter of credit | 10% of the bid | Held by the public owner as the bid guaranty |
| Electronic verification | Where the public entity accepts electronic bids | Per the entity’s system |
Source: Ohio Rev. Code § 153.54. See our bid bond guide.
The contract bond
A bidder who enters the contract must file a bond for the amount of the contract. The bond covers the contractor’s failure to perform and unpaid claims of subcontractors, material suppliers, and laborers, who are among the parties it benefits (Ohio Rev. Code § 153.54). It works like a combined performance and payment bond.
Which contracts it covers
Section 153.54 applies to bids on public improvements for the state, political subdivisions, districts, institutions, and agencies, except contracts with the Ohio Department of Transportation and certain contracts under other sections. A bidder on a project costing less than $500,000 may withdraw without liability in limited cases, such as when a surety certifies the bid would exceed the bidder’s bonding capacity (Ohio Rev. Code § 153.54).
How much Ohio public improvement bonds cost
Bid bonds are often provided at little or no direct charge to contractors with a bonding program. Contract bonds are priced as a percentage of the contract, commonly about 0.5% to 3% depending on the contractor’s finances and experience (NASBP).
Ohio public improvement bond FAQs
What bid guaranty does Ohio require on public improvements?
A bond for the full bid amount, or a certified check, cashier’s check, or letter of credit for 10% of the bid, under ORC § 153.54.
How much is the Ohio contract bond?
The contract bond must be for the full amount of the contract.
Does ORC 153.54 apply to ODOT contracts?
No. Contracts with the Ohio Department of Transportation are excluded.
Related guides
- Ohio surety bonds
- Bid bonds
- Performance bonds
- Payment bonds
- New York public works payment bond
- Surety bonds
- Surety bond cost
- Surety bond cost calculator
- Buy a surety bond online
- South Dakota public works bond
- West Virginia public works bond
- New Mexico public works bond
- Nebraska public works bond
- Kansas public works bond
- Iowa public works bond
- Oklahoma public works bond
- South Carolina public works bond
- Alabama public works bond
- Tennessee public works bond
- Washington public works bond
- Michigan public works bond
- Pennsylvania public works bond
- New Jersey public works bond
- Illinois public construction bond
- Georgia public works bond
- Virginia public works bond
- North Carolina public construction bond
Important information
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Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, the surety, your credit, the bond type, and underwriting.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Tell us about your Ohio public project, and a licensed agent will help you set up bid and contract bonds.
