Bid Bond (Tender Guarantees)
Bid Bonds are required in connection to public tenders. Where a company participates in such a tender, it must submit a bid bond together with its offer.
- Demonstrates to the contracting party that the tenderer is reliable, a sound business and has the ability to carry out the work being tendered for.
- Indicates that your tender is genuine and you have a firm commitment to the project.
- Secures payment for the beneficiary (the contracting party) of the guaranteed amount in the event of:
- withdrawal of offer before its expiry date
- repudiation of the contract by the tenderer after being awarded
- failure of the successful tenderer to provide a replacement Performance Bond.
Performance Bond (Guarantees)
Performance Bonds are issued when the contract has been awarded, and underwrite
the contractor’s obligations to complete the project in terms of the tender.
- Demonstrates to the contracting party that the tenderer has the required financial strength to complete the contract.
- Provides support to your contract.
- Secures payment for the contracting party in the event the contract is not fulfilled.
For more information please contact:
Relationship Manager, Trade Finance
Telephone: +61 2 9377 8915
Fax: +61 2 9221 5428
Mobile: +61 421 097 656