What is a Bid Bond?
A bid bond or tender security is a very important requirement issued during the tendering process to the procuring entity as a guarantee and as a sign of commitment and willingness to enter into a contract with the procuring entity. The Bid Bond prequalifies the contractor and provides the necessary security to the procuring entity guaranteeing that the contactor will enter into the contract, if it is awarded. However a bid bond does not give assurance to the Procuring entity that the contractor is capable of performing on the contract once it is awarded to him.
How Bid Bonds Work
Asking for a bid bond will keep contractors from submitting irrelevant bids, on the grounds that they are willing to enter into a contract with the procuring entity. It is also a means of deterring non serious bidders from the tendering process. A bid bond is presented together with a quotation and other relevant documents required for the purpose of prequalification.
InvesteQ Capital Bid Bonds
Investeq Capital, through its partnership with reputable, recognized and financial institutions, issues bid bonds to enable tendering firms to obtain these guarantees for the contracts they bid for under flexible terms such as:
- Cash free
- No account opening
- Simple, convenient and flexible.
- Same day service
- Personalized service
- Cross border / international bidding
- A variety of financial institutions to choose from.