Bid Bond Process
To get Bid Bond Guarantee from Bronze Wing Trading L.L.C., please follow the process given below:
1. Firstly, the seller / contractor submits their requirement to us in terms of a contract copy or tender documents.
2. Further, we will analyze the deal between the seller / contractor and buyer / developer. And then, will inform the client whether they are eligible to proceed further or not.
3. If they are eligible, we will sign the service agreement with the parties involved. And, we will inform them about the service charges to be paid initially to start work on their request.
4. Once we receive the service charges, we will start structuring their Tender Bond with our bank. Then, we will send the MT760 draft for the client’s review. And further, we will ask them to submit the documents and issuance fee to issue Tender Guarantee on their behalf.
5. Upon receipt of documents and charges, we will act at once and request our Bank to initiate for the issuance of the Tender Guarantee.
6. Accordingly, as per our request, our bank will issue the Bond to the developer’s or buyer’s bank account via swift MT760 within 48 working hours.
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Bid Bonds Video
Bid Bond Guarantee
A Bid Bond is also known as a Tender Bond. This is an undertaking issued by a bank for their clients while they submit any tender to the parties involved. Also, this is issued in favor of the developer to secure their fiscal risks. In case, if the successful tenderer fails to enter into the contract.
Usually, when tendering an export contract, the buyer may require the seller to provide a guarantee upon tender submission.
For instance, when a supplier is awarded the tender but fails to honor the export contract. Or else, they don’t issue add-on guarantees to the buyer when required. Then, the buyer has the right to call the guarantee. That means that they may demand payment of the bonds’ amount from the issuer to cover their losses.
For instance, a tender has been announced for a trade / project, and a seller / contractor wishes to enter into a bid. In this case, they must contact the provider to issue the bonds on their behalf. Moreover, this assures that the tenderer is fiscally capable to embark on the project or trade deal. Also, it assures that they will respect and honor the terms stated in tender documents. Further, the amount of a bond is a certain percentage of the export or project contract amount.
Prior to issuing the bonds, the bank will assess the contractor’s / seller’s commitment. And also, the bank verifies the seller’s / contractor’s ability to supply goods or to perform building projects. Mostly, the bank will also demand more security from the seller or contractor for their bonds’ requirements.
A Tender Bid is issued when you submit your tender. And it remains in force for the term needed by the buyer or developer. In case, if they fail to win the tender, the developer or buyer will return the bonds.
However, if the contractor / seller wins the tender, they will sign the contract with the counter parties. Accordingly, they will provide a performance guarantee in favor of them. At this point, these bonds will be returned; or else considered to be as null & void.
Tender Bid is a vital document to enter into the tender – either for supplying goods or for building projects. Also, it can ease the process of tender between the parties involved.
Also, this is to say that without a bank guarantee, project owners or importers would have very little assurance. Because they don’t know whether the contractor / seller is able to finish their work within the set time limit.
So, if you want to get hold of valuable contracts from buyers / developers; then, it is a must to secure this guarantee in their favor.
Parties Involved in Bid Bonds Guarantee
- Supplier / Contractor
Who requests the tender guarantee from their bank to issue in favor of the counter parties to qualify in a tender.
- Buyer / Developer
Who asks for a tender bid from a seller or contractor.
The one who issues the tender guarantee on behalf of the contractor / seller and in favor of the developer / buyer. Also, it assures to the parties that the contractor / seller can perform the job, if they win the tender.
Types of Bid Bonds
The beneficiary can call the bond only if the T&Cs met as stated in the tender guarantee.
The beneficiary can call the bond at any time, in case if the contractor / seller is in default.
Bid Bonds Benefits
Want to secure large scale contracts from the global market? But not sure where to start?
Here is Bronze Wing Trading to extend its bank facilities for traders & contractors. Further, availing Bid Bonds from us 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.
- It can reduce fiscal risks.
- Also, it assures the developer / buyer that the contractor / seller will comply with the terms of the contract; if the tender is awarded.
- Provides assurance from the bidder who signs the deal.
- And also, ensures that the contractor submits a precise quote under the tender process.
Bid Bond Cost
The Bid Bond cost consists of the bank commission fee, processing fee, swift charges, and also other handling fees.
Are you going to submit a proposal for a large scale project? Do you want to show your fiscal strength to take on the project? Contact Bronze Wing Trading today!
Bronze Wing Trading is a direct provider of Bid Bond Guarantee from the rated European Banks. You can receive bid bonds from our European bank account within 48 working hours.