a bond submitted with the bid of guarantee that the bid has been made in good faith and the bidder will enter into contract if his proposal is accepted. He will furnish performance and payment bonds., type of bond required in public construction projects which must be filed at the time of the bid and which protects the public agency in the event that the bidder refuses to enter into a contract after the award to him or withdraws his bid before the award. A type of indemnity bond. Not to be confused with "bid guarantee".