What type of organizations typically use Standard Form 24?

Standard Form 24, known as the "Bid Bond," is predominantly used in construction and contracting situations where a contractor must provide assurance to the project owner that they will enter into a contract if awarded the job. This form is specifically related to construction bids and is thus commonly utilized by insurance companies that issue bid bonds. Insurance companies typically ensure that contractors will perform their obligations if they are awarded the contract, making them the key organizations responsible for the issuance and management of these bonds.

In this context, while various financial institutions might have roles in the broader financial landscape, it is specifically insurance companies that are directly involved in providing bid bonds through Standard Form 24, ensuring that project owners are protected in case a contractor fails to fulfill their contractual obligations. Hence, understanding the role of insurance companies in this process clarifies why they are the primary users of Standard Form 24.