A Bid Bond ensures that bidders honor their tender commitments and enter into the contract if awarded.
A Bid Bond is a financial instrument issued by a bank or financial institution to guarantee that a bidder will honor the terms of a tender or bid. If the bidder fails to proceed after winning the bid, the bond protects the beneficiary from financial loss.
Bid Bonds are commonly used in government tenders, infrastructure projects, construction contracts, and large commercial bidding processes.
Government and public sector tenders
Supply and service contracts
Infrastructure and construction projects
International trade bids
