Bid bond provides the Principal / seller with assurance that the bidder has the capacity and financial means to execute the job or deliver for the price quoted in the bid.

Benefits

• Provides comfort to the contracting party that the tenderer/ bidder is reliable, genuine, sound, and has the ability to carry out the work being tendered for.
• It secures payment for the beneficiary (the contracting party) of the guaranteed amount in stipulated circumstances, e.g:
  • The offer is withdrawn before its expiry date
  • The tenderer repudiates the contract after it has been awarded
  • The successful tenderer fails to provide a replacement Performance Bond.