Which document is used to ensure a contractor honors their bid?

The document used to ensure that a contractor honors their bid is a bid bond. A bid bond is a type of surety bond that provides a guarantee to the project owner that the contractor will enter into a contract at the price they bid if awarded the job. This financial assurance is critical during the bidding process, as it protects the owner from the risk of the contractor backing out after having submitted a bid. If the contractor fails to follow through, the bid bond provides financial recourse for the project owner, allowing them to recover costs associated with finding another contractor or covering any losses incurred because of the default.

While a performance bond is relevant after the contract is secured, as it guarantees that the contractor will complete the project according to the contract terms, it does not protect against bid rejection or contractor withdrawal during the bidding phase. Similarly, a surety bond is a broader term encompassing various types of bonds, including performance and bid bonds. A credit bond is not typically involved in contract bidding or execution, focusing instead on the contractor's financial reliability. Therefore, a bid bond specifically addresses the need for assurance that a contractor will honor their bid, making it the correct answer.