Do you require Bid Bond – Tender Guarantee on behalf of your company to submit your tender for the upcoming bidding contest? Follow the simple steps to obtain Tender Bond from rated banks without blocking cash funds.
Follow the simple steps to obtain Tender Guarantee from rated banks:
Bid Bond – Tender Guarantee is issued by a bank on behalf of the contractor and in favor of the project owner. Further, this will provide an assurance that the winning bidder will undertake the project or supply contract; as per the agreed terms of the bid.
Bid Bonds help to guarantee that a contractor or seller will honor the terms of the bid. It also, assures that they are financially stable; have the required sources to take on the project or supply contract. Further, the main purpose of the Bid Bonds shows that they will be able to provide a Performance Bond if the bid awarded.
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 bid on projects or supply contracts.
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 to the counterparty, that the bidder will honor the terms of the bid & will undertake the project without any default if awarded.
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. In other words, the quotation cannot be revised, 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 demands 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.
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. And this assures the winning bidder will complete the project as per the signed contract without any default.
Project owners mostly demand Tender Guarantees. They require 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 the one whom they can trust. Also, they want to ensure that the bidder is fully capable to perform, in case, if the tender awarded.
So, the bidder who submits their tender along with the guarantee will qualify to enter into the tender process. To avail this bond, contact us today! We will help you by providing this guarantee on your behalf from rated banks.
There are three parties involved here:-
Applicant – The contractor / seller who requests a tender guarantee from their bank.
Beneficiary – The project owner / buyer who demands & receives a Bond Guarantee from a seller / contractor.
Issuing Bank – The Bank which issues a Tender Bank Guarantee on behalf of the contractor and seller by assuring the project owner and buyer; that the winning bidder will honor the terms of the bid without any default.
When it comes to availing Bid Bonds, you will likely need to secure a Bid Bond for the specific percent of the total quoted contract value (most commonly about 5-10%). This means, if you’re going to bid for a project worth $100,000 and you’re asked to provide a 10% Bond means, you need to secure a Bond of the value of $10,000. To be noted that the bond value may be vary based on the project and project owners’ demand.
If you contact your bank to avail a Bid Guarantee; then they will demand you to provide 100% of the bond value as cash margin. In case, if you are unable to meet the banking terms, then you will not be able to avail Bid Bonds from your bank; also, obviously, you will lose your chance to bid on the contract or project.
So, to help bidders who face cash flow issues to avail the required bonds from their bank, we are here to support them. Just Submit your Requirements Submit your Requirements to us and avail the required tender guarantee issued at nominal cost. Unlike banks, we will not demand you to provide a cash margin or to block your cash funds to issue the MT760 Guarantee.
The cost may vary based on the total contract value and also based on its tenure. It also includes admin fee, issuance fee, negotiation fee, etc. To know more about costs, contact our team!
Are you looking to submit your tender for an upcoming project or supply contract?
Do you want to get qualified to enter into the bidding contest?
Avail Bid Bond and submit your bid along with a Tender Bank Guarantee to increase your chance of winning the contest!
We at Bronze Wing Trading L.L.C. provide Bid Bonds from rated banks without any cash margin!
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