Bid Bond

Do you require Bid Bond – Tender Guarantee to submit your tender for the upcoming bidding contest? Follow the simple steps to obtain Tender Bond without blocking cash funds.

1. First, the Seller / Contractor needs to submit their request to BWT by providing the tender documents or the quote to complete the project within the set time limit.
2. Next, we will study their transaction; to find out whether they met all our norms or not. If so, we will approve their request & ask them to sign the service agreement &
3. After they sign the service agreement we will start work on their transaction by structuring their Bond with our bank by blocking our bank limit.
4. Then, we will send the Bid Bond draft to the client for their review. Also, we will ask them to pay the issuance fee to proceed further.
5. Finally, we will instruct our bank to issue the Bid Bonds on behalf of the counter party via SWIFT MT760.

What is Bid Bond Guarantee?

Bid Bond – Tender Guarantees are issued by banks on behalf of contractors and in favor of project owners. This assures that the winning bidder will undertake the project or supply contract; as per the agreed terms of the bid.

Bid Bonds act as a guarantee that a contractor or seller will honor the terms of the bid. This also shows the proof that they are financially stable; have the required sources to take on the project or supply contract. Even more, the main purpose of these Bonds is to show that they are capable to provide a Performance Bond; if awarded with a bid.

Without Bid Bonds, project owners & buyers have no other way of guarantee that the winning bidder would be able to complete the job as per the bid terms. That’s why almost all project owners and buyers demand a bond from bidders; before they submit their bids on projects or supply contracts.

As a result, Bid Bonds act as a security for bid proposals – especially for large projects such as high-rise building construction or bulk goods supply. Further, filing the tender without the required bond will make the contractor automatically disqualified from the bidding process. So, make use of Bid Bonds to win more trade deals and contracts.

What is the Purpose of a Bid Bond?

Bid Bonds play a vital role in both the construction and trade industry. When a contractor or a supplier submits their tender for a construction project or a commodity contract; they will submit their bid along with Tender Guarantee. This enhances the chance of winning the bidding contest by giving the assurance that the winning bidder will honor the terms of the bid & will undertake the project without any default.

Also, it gives assurance to the counterparty, that in case if the bidder fails to honor the terms of the bid, then they will be compensated. For instance: if the contractor or seller raises the price of the job or supply of goods after signing the contract, then they must obtain the consent of the concerned parties. With mutual consent, the prices can be revised. Also, to be noted that no one is authorized to revise the quotation, unless or until all concerned parties are agreed upon it. This is the vital point wherein the Tender Bond secures all parties’ rights.

Nowadays, almost all project owners demand such bonds from bidders to secure themselves from defaults. By submitting a tender along with this bond, the contractor / seller will qualify to enter into the bidding process. Also, the project owner or buyer can easily find the right party to complete the job. So, as a contractor / seller you require this type of bond; if you want to sign more projects or supply contracts in the construction or trade industry.

Why Have a Bid Bond?

Mostly, at first instance, project owners aren’t aware whether the bidder can complete the project or not; if awarded. So, they demand this Bond from the bidders; as this bond assures that the winning bidder will complete the project as per the signed contract without any default.

Project owners mostly demand Tender Guarantees to act as a security against the risk of the successful bidder failing to enter into the contract. When a project owner decides to bid out, they will often exclude the bidders without Bank Guarantee. Because the project owner needs to hire the one whom they can trust. Also, they want to ensure that the bidder is fully capable to perform the task, in case, if they win the bid.

So, the only bidder who submits their tender along with the guarantee will be qualified to enter into the tender process. Do you require Tender Bond to get pre-qualified to enter into the contest? Contact us today! We will help you with the provision of BG MT760 from rated Banks with International Repute. Further, in case, if you want to see, if you can qualify for Bid Bonds; discuss with us now!