Ohio Revised Code §153.54–153.571 governs construction bonding requirements across the state. Under this law, contractors must provide a bid guaranty at the time of bid submission, followed by performance and payment bonds upon contract award for public improvement projects, as specified in the project’s bid documents.

Unlike many states, Ohio does not establish a single statewide dollar threshold for when construction bonds are required. Instead, bonding requirements are determined by the contracting authority and outlined within each project’s specifications.

Recent updates under House Bill 96 (effective September 30, 2025) expanded electronic bidding options — including electronic bid guaranties — and streamlined certain procurement processes. This makes it even more important for contractors to review bonding requirements in each bid package carefully.

The purpose of these bonds is to protect:

• The public entity (project owner) 
• Subcontractors, laborers, and suppliers 

Performance and payment bonds may be issued as separate bonds or combined into a single instrument for 100% of the contract amount.

Bid guaranty requirements are commonly included in bid documents. Performance and payment bonds are required at award. A surety company authorized to do business in Ohio must issue all bonds.

For a deeper breakdown of how these requirements impact approvals and contractor capacity, see our Performance Bond Guide and Ultimate Construction Bond Guide.

1. Bid Bond

A bid bond guarantees that:

• You will honor your bid if selected 
• You will provide the required performance and payment bonds

In Ohio public bidding, bid bonds are commonly required at 5%–100% of the total bid amount, depending on the project and agency. Many individual cities choose to follow the Ohio Revised Code, which makes it a 100% bid bond that automatically converts into a performance and payment bond.

If you fail to move forward after winning the bid or cannot provide the required bonds, the project owner may file a claim.

2. Performance Bond

A performance bond guarantees that:

• The contractor completes the project according to contract terms 
• The project owner is financially protected if you default 

This bond protects the public entity or private developer.

3. Payment Bond

A payment bond guarantees that:

• Subcontractors, suppliers, and laborers are paid 
• Lower-tier parties can file a claim if unpaid 

These bonds are especially important on public projects where mechanics’ liens are not available.

4. Contractor License Bonds in Ohio

It’s important to understand:

• Construction bonds (bid, performance, payment) are required for specific projects.
• Contractor license bonds may be required by cities or municipalities.

Ohio does not require a statewide contractor license bond for general contractors. General contracting licensing is handled primarily at the local (city or county) level, where many municipalities require license or permit bonds (often $5,000–$25,000, depending on the jurisdiction and trade). 

Specific trades, such as electrical, plumbing, and HVAC, are licensed at the state level through the Ohio Construction Industry Licensing Board. Always verify requirements with the relevant city, county, or board.

You can learn more about specific Ohio contractor license bond requirements in our guide, including state and municipal requirements.

Whether you’re bidding on your first public project or scaling into larger contracts, ZipBonds helps streamline the approval process.

Step 1: Apply Online

Submit a short application with basic business and project details.

Step 2: Submit Supporting Documents (if needed)

For larger projects, you may need:

• Business financial statements 
• Work-in-progress (WIP) schedule
• Project details and contract information 
• Resume of completed projects 
• Personal financials (for larger bonds)

Step 3: Get Approved

We approve many bonds within 24 hours — often the same day.

Step 4: Receive Your Bond

Once approved and paid, your bond is issued and ready for submission.