How to Get Bid Bond
- Submit your Bond Guarantee requirements to us in terms of contract copy or tender documents.
- Next, we will analyze the contract between you and your counterparty. Further, if you’re eligible to proceed further, we will approve your request; also, will ask you to sign the service agreement & to pay the admin charges.
- Once the agreement is signed and the charges are paid, we will structure your guarantee with our bank by blocking our bank limit.
- After that, we will send the Bond Draft for your approval; also will inform you the charges of BG Issuance.
- Finally, once the draft is approved and the charges are paid, we will instruct our bank to issue the Tender Guarantee to the counter party’s bank account via SWIFT MT760. Accordingly, our bank will issue the MT760 SWIFT within 48hrs.
Apply For Bid Bonds
Bid Bonds Video
Bid Bond Issued to South Africa
A Construction Firm approached Bronze Wing Trading for a Bid Bond Guarantee to enter into the bidding contest floated by a developer in South Africa. We facilitated the BG worth 7 Million in favor of the developer by blocking our bank limit available with our European Bank. With this MT760, the contractor won the bidding contest & signed the project.
What is a Bid Bond Guarantee?
How Does a Bid Bond Work?
Usually, when a contractor or a supplier is about to submit their bids for a contract or trade deal, the counterparty will demand a seller to provide a guarantee upon tender submission. Further, this guarantee assures that the bidder will comply with the terms of the bids. Also, it ensures that in case, if the successful bidder fails to enter into the contract or didn’t perform as agreed; then the counterparty can claim the bond to get the compensation.
Tender Bonds not only assure that the contractor will honor the terms of the bid; also, assures the project owners to claim the bid bond as compensation, in case of any default in completing the tasks, as per the bidding terms.
Moreover, these bonds are issued when you submit your tender. Also, it remains in force for the term needed by your buyer or developer. In case, if you fail to win the tender, then, the developer or buyer will return the bonds. But, if you win the tender; you will sign the contract with the project owner or buyer. After then, you need to provide a performance guarantee in favor of the owners. Once the PG MT760 is issued, the project owners or buyers will return the bid bonds, or else, it will be considered null & void.
Do You Need Tender Bonds?
Yes! Bid Bonds play a vital role in bidding for a construction project or trade contract. In case, if you submit a tender without being backed by a bond, it will not be accepted. This is because Bid Bonds serves as a guarantee for project owners to hire a contractor who is qualified to execute the work as per the bidding terms. In bond issuance, as Banks stands as a guarantor, it will perform a thorough background check before issuing any contract bonds. They will check the contractor’s credit score, financial worth, & past project history in terms of on-time completion of work. In case, if they are unsure whether you as a bidder can actually perform the job, then they will not issue the bid bond; as it creates a huge risk for them, in case of any claim arise.
Since the banks are performing thorough checks before issuing the MT760, project owners can easily trust the contractors who can provide Bid Bond guarantees. This is the reason why they demand Bid Bonds as a Guarantee from bidders who submit their tender for a project or trade deal. Besides, having this guarantee in hand makes your bids more appealing & trustworthy, which increases the chance of winning the contract.
Parties Involved in Bank Guarantee
1. Supplier / Contractor
Who requests their bank to issue a tender guarantee in favor of their counter parties to get qualified in a tender.
2. Buyer / Developer
Who demands & receives Bid Bonds from a seller or contractor.
The one who issues the tender guarantee on behalf of the contractor or seller and in favor of the project owner/ buyer. Also, it assures the parties that the contractor or seller can perform the job; if they win the tender.
Types of Bid Bond
The beneficiary can call the bonds only if the T&Cs met as stated in the tender bond.
The beneficiary can call the bonds at any time, in case if the contractor or seller is in default.
Purpose of Bid Bonds
Availing Bid Bonds for bidding contracts not only helps you to win worthy contracts. But, it also provides you with the benefits listed below:-
- Solve trust issues between the parties involved in the trade.
- Can reduce fiscal risks.
- Also, it assures the project owner or buyer that the contractor or seller will comply with the terms of the contract. That is if the tender is awarded.
- Provides assurance from the bidder who signs the deal.
- Also, ensures that the contractor submits a precise quote under the tender process.
How Much Does Bid Bonds Cost?
The bond cost consists of the bank commission fee, processing fee, swift charges, and also other handling fees. If you want to see if you qualify for bid bonds, please fill out our online application. Our team will study your contract & will approve your request in just 24hrs!
Apply for Tender Bond Guarantee!
Want to secure worthy contracts from the global market by contesting on a bid? But not sure where to start? We are here to help you by extending our bank facilities on behalf of traders and contractors. As the Surety Bond Providers in Dubai, Bronze Wing Trading assists start-ups and medium-sized contractors to get the bond quickly issued without blocking their cash funds. With a simple & easy process, we have a successful track record of helping contractors with low credit scores to qualify for surety bond issuance.
Bronze Wing Trading is a direct provider of different types of Bank Guarantees from rated Banks in Europe. With our own credit lines, we can provide the required guarantee from our rated bank accounts within 48 working hours.