Bid Bond Guarantees (Tender Bonds)
Tender authorities want proof you’re serious before they open your price. We issue Bid Bond Guarantees
that meet tender specs, name the correct beneficiary, and keep you in the race. Underwriting is swift and focused on capacity, track record, and your ability to post the final performance security if awarded.
Outcome:
A compliant bid bond in the format the tender requires, delivered on time, with clear validity dates and extension mechanics if the award is delayed.
Who Needs a Bid Bond
EPC and Construction Bidders
Government and SOE tenders that demand 2%–10% bid security of the contract value.
O&M and Services Providers
Framework bids that require a bond to validate participation and deter frivolous pricing.
Developers and Sponsors
PPP and IPP rounds where bid security is mandatory before technical opening.
Consortia / JVs
Multi-party bids needing clear beneficiary, joint liability wording, and signatory proof.
Terms and Pricing
| Item |
Details |
| Coverage amount |
Typically 2%–10% of tender price (as per tender rules) |
| Validity |
Usually 90–180 days, extendable on request |
| Upfront premium |
3%–7% of guaranteed amount, risk-based (minimum fee applies) |
| Annual / extension fee |
2%–3% p.a. pro-rated for extensions beyond original validity |
| Security / conditions |
May require cash margin, standby support, or covenants (case by case) |
Underwriting Focus
- Tender documents: instructions to bidders, bid security format, expiry, claim language
- Applicant capacity: sector track record, team, equipment, local partner readiness
- Financial footing: balance sheet strength, cash runway, access to performance security if awarded
- Compliance: KYC, UBOs, sanctions, jurisdiction checks
- Contingency: plan to convert to Performance Bond or APG on award
Process and Timing
1) File Intake
Send ITB, draft bond wording, bid forms, and bid price range.
2) Risk Review
Fast screening of capacity, past performance, and compliance.
3) Terms Issued
Premium and conditions, validity, claim language alignment.
4) Bond Delivery
Final issuance to the named beneficiary. Extensions on request.
Common Reasons for Decline
- Unclear beneficiary details or conflicting tender instructions
- No path to performance security if the bid wins
- Thin financials relative to contract size
- Missing permits or disallowed jurisdictions
- Anonymous UBOs or incomplete KYC
Documents Required
| Document |
Purpose |
| ITB / RfP and draft bid bond format |
Defines wording, validity, beneficiary, and claim rules |
| Company KYC and UBOs |
Compliance clearance |
| Past performance / references |
Capacity proof for scope and geography |
| Financials and bank letter (if any) |
Shows ability to post performance/APG on award |
Request a Bid Bond Guarantee
Send the tender pack and bond format. We’ll confirm eligibility and issue terms on a tight timeline.
Start the Process
Bid Bonds are issued subject to underwriting, compliance checks, and approval. Wording must match tender requirements and governing law. Extensions may incur additional fees. We do not offer unconditional guarantees.