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Bid Guarantee
2022-01-17
Product definition
In engineering construction and material procurement projects concluded by means of bidding, our bank issues a written document at the request of the Tenderer to ensure that the Bidder will not withdraw or change its bid within the validity period of tender, and will sign the contract or submit the performance guarantee within the specified time after winning the bid.
Scope of application
It is applicable to the situation that the Employer requires the Bidder to pay the bid security during all open tendering and bid negotiation.
Function characteristics
1. For the Tenderer: The Bidder is generally required to pay the bid security for behavior restrictions to avoid the loss caused to the Bidder by changing or withdrawing the bid in the process of bid evaluation, or refusing to sign the contract after winning the bid. Bid security is a good alternative to cash security due to its convenience for customers.
2. For the Bidder: The capital occupation caused by paying cash security is reduced for more capital income.
3. Compared with cash security, bid security can optimize the allocation of limited funds.
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