Are you a contractor or supplier who is going to submit your bid for a new project? Is your bid qualified to enter into the bidding contest? Now you can get pre-qualified to enter into the bidding contest and can increase the chance of winning the bid by using the Bid Bond – Tender Bond Guarantee.
It is a guarantee issued by a bank to assure the project owner that if the bidder fails to honor the terms of the bid, the project owner can claim the bond to get compensated. Also, issued on behalf of the contractor and in favor of the project owner, Bid Bond assures that the contractor is financially capable and has the required manpower to take on the project if the bid is awarded.
For instance: A developer floats a bid for a high-rise building project. Before submitting the bid, contractors used to prepare a quote which includes the cost of material, labor charge, equipment purchase, &, etc. required to complete the project on time. And then, they submit the quote to the project owner in the form of a bid. In the next step, the developer reviews the bid and the one who provides the realistic quote wins the bid. Finally, the project will be awarded to them. But in certain cases, project owners may feel skeptical about whether the contractor will complete the tasks within the submitted budget. Or else, they may increase the quote in the mid of the work. So to get the required assurance, the owners can demand from the contractors to submit a Performance Bond.
Further, in the bidding process, Bid Bond serves as a guarantee that the contractor who wins the bid will undertake the project; also, will complete the project within the submitted quote. In case, if the contractor fails to honor the terms of the bid, i.e. if they increase the price for the job after signing the contract. Then the contract will be breached. Further, to cover this cost, the project owner can claim the Bid Bond provided by the contractor.
To get Tender Bond for your upcoming contracts, you can contact us today! We are the International Bank Guarantee Providers in Dubai. Indeed, we provide tailored solutions for contractors which help them to sign worthy contracts and expand their business without any financial hurdles. Unlike banks, no need to block your own cash funds to get a Letter of Guarantee. All you need to do is – submit your Bid Bond requirements to us. We will structure your deal and will facilitate the required MT760 issued from our rated Bank Accounts in 2 days. So, what’s more? Contact us today to apply for Bank Guarantee without blocking your cash funds.