What are they?
Often a prerequisite step in the tendering process, bid bonds , usually an On-demand wordings are submitted with a tender in order to lock in a tenderers promise to begin a project.
Why are they used?
They protect the project owners from having a Contractor win a Contract only to fail in an area/s of their contractual obligations. Simply put it gives all parties involved the guarantee that the tenderer has the financial strength to perform their contractual duties for the terms and price they tendered the contract at.
It covers the project owner where the contractor is incapable of delivering on what they promised In the tendering stage by being able to call in the bond to cover costs of retendering.
It covers the project owner where the contractor is incapable of delivering on what they promised In the tendering stage by being able to call in the bond to cover costs of retendering.
What we need to get started
- Completed Bid Bond Proposal Form
- Last two years consolidated audited accounts
- Up-to-date management accounts
- Copy of Bond Wording