What type of bond ensures the contractor will carry out the contract at the bid price?

The correct choice is the bond that ensures the contractor will carry out the contract at the bid price. A bid bond is a type of surety bond that a contractor submits along with their bid to guarantee that they will enter into the contract at the bid price if awarded the contract. It provides financial assurance to the project owner that the contractor is serious about their proposal and will not back out after winning the bid. If the contractor fails to follow through, the bond can protect the owner from financial loss, as the amount can be used to cover the difference if the owner has to re-bid the project or find another contractor at a higher price.

The other types of bonds, while important in the contracting process, serve different purposes. For example, performance bonds guarantee that the contractor will complete the work according to the contract's terms and conditions, while labor and material payment bonds ensure that obligations to subcontractors and suppliers are met. The bid bond focuses specifically on the contractor's commitment regarding the bid itself.