Introduction

Bid Bond is a guarantee issued for submission together with tender documents for construction projects or for the supply of goods, in which it guarantees that the price quoted in the said tender documents would not be altered or cancelled within the tender period and if the tender is successful, would undertake to sign the respective contract or furnish any required performance bonds, etc as required within the specified period of time.

Product Features

1. Regulate and formalize the selection process of suppliers or contractors for big projects.

2. Mitigate the mutual distrust of parties involved in projects.

3. Ensure due compensation when contract is breached.

4. Suitable for companies tendering for projects.

Application requirements

1. Maintain current account with our bank.

2. Companies must posses the proficiency in performance under the contract

3. A credit facility or at least 100% cash margin or deposits must be provided (must be pre-arranged with the bank).

4. The format of the bankers guarantee that is to be issued must be acceptable to the bank.

Application Procedures

1. Applicant submits bank guarantee request together with the documentary evidence showing the need for the Bid Bond eg the invitation for tender.

2. Applicant remits the cash margin or deposits into the Bank and submits the required documents.

3. The bank evaluates customer and transaction information.

4. The bank reviews the bank guarantee request, the format of the guarantee and checks the security documentation.

5. The banker guarantee is issued