Bank guarantees
Bid Bond (Tender Bond)
Application
Guarantee Amount
Most frequently from 2% to 5% from the contract value.
Term
Most frequently short-term.
Area
For participation in tender procedures.
Purpose
Preventing from claims by tender organisers against a tender participant who would withdraw himself from the bid before the end of the validity period or if the offering is changed unilaterally or in case the tender winner refuses to sign the contract or to provide further guarantees on demand.
