A contractor needing a bid bond to get a contract is referred to as what?

In the context of a bid bond, the term used to refer to a contractor needing the bond to secure a contract is "Principal." The principal is the party that is required to fulfill the obligations of the contract, which in this case is the contractor submitting the bid. The bid bond serves as a guarantee that the contractor will enter into the contract if awarded, and it protects the owner from potential losses in case the contractor fails to do so.

Choosing "Principal" reflects the role of the contractor in the bonding process, as they are the ones who initiate the bond to assure performance and commitment to the project requirements outlined in the contract. Understanding the roles of each party in the bonding process is crucial for anyone studying construction contracts and bonding, as it helps clarify responsibilities and expectations in contractual relationships.