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, we will inform you about the service charges to start the work on Guarantee issuance.
- Further, you need to sign the service agreement with us. Further, once the agreement is signed and the charges are paid, we will structure your guarantee with our bank by blocking our bank limit.
- As a result, 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
What is 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. Further, 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.
Bid Bonds for Construction
Bid Bonds play a vital role in the construction industry. For instance: if a developer floated a tender for a building project; they will demand all the contractors who participate in the contest to provide Bid Bonds in their favor. Further, this gives assurance to the project owner that the bidder who wins the tender will honor the bidding terms; also have the required man power to complete the project on time.
Also, it assures the bond owner that they will get compensation if the bidder fails to begin the work on the project as stated in the contract. Further, this commitment has been issued by a bank; so, prior to issuing the bonds, the bank will assess the contractor’s qualification to perform building projects.
Tender Bid Process – How It Works?
Tender Bids are issued when you submit your tender. Also, it remains in force for the term needed by the buyer or developer. Further, 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. Further, at this point, these bonds will be returned; or else considered to be null & void.
Further, it’s a vital document to enter into the tender – either for the supply of 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. This is because they don’t know whether the contractor or the supplier can finish the work within the set time limit.
And so, 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; also, it 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 / seller and in favor of the project owner/ buyer. Also, it assures the parties that the contractor / 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 / seller is in default.
Purpose of Bid Bonds
Want to secure large scale contracts from the global market? But not sure where to start?
Here is Bronze Wing Trading L.L.C., the Bank Guarantee Providers in Dubai. Also, we extend our bank facilities on behalf of traders and 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.
- Can reduce fiscal risks.
- Also, it assures the project owner / buyer that the contractor / 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.
Cost of Bid Bonds
The bond cost consists of the bank commission fee, processing fee, swift charges, and also other handling fees.
Apply for Tender Bond Guarantee!
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 Bonds – Tender Bond Guarantees from the rated European Banks. So, we can provide the required guarantee from our own bank accounts within 48 working hours.