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.
Key Benefits
- 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.
Key Benefits
- 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:
Claudio Piccinini
Senior Relationship Manager, Trade Finance
Telephone: +61 2 9377 8915
Fax: +61 2 9221 5428
Mobile: +61 421 097 656
Email: trade@arabbank.com.au