A tender guarantee (also called a tender bond or bid bond) is requested from the tender participants during the tender processes.
The aim of the tender guarantee is to make sure that the tender participants submit workable bids under the tender. A tender guarantee protects the tender organizers against the tender participants’ acts of injustice.
By having the tender guarantee, the tender organizer knows that the participants will comply with the terms of the contract in the event that that the tender is accepted.
Tender guarantees are usually issued for 2% to 5% of the tender amount.
On this post you can find a tender bank guarantee sample, which is prepared as per ICC sample demand guarantee forms.
Tender Bank Guarantee Sample
Issued By: First National Commercial Bank
1000 John Rogers Drive 35210 Birmingham United Kingdom
Beneficiary : Aqaba Development Corporation (ADC). Date : 30.August.2014
Al-Hussein Ben Ali street
P.O. Box 2680,
The Hashemite Kingdom of Jordan
Tender Bank Guarantee No. : 2014/003-Adc
We have been informed that Reliance Industries Limited, Mumbai. India. , (hereinafter called “the principal”), responding to your invitation to tender No. 2014/tndr/002 for the supply of 200 Metric Ton/Metric Tons of Cleaning Chemicals, has submitted to you his offer No:15082014 dated 15.August.2014.
Furthermore we understand that, according to your conditions, offers must be supported by a tender guarantee.
At the request of the principal, we ICIDI Bank. hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of 200.000,00 USD (say two Hundred Thousand USD) upon receipt by us of your first demand in writing and your written statement stating:
that the principal is in breach of his obligations under the tender conditions, and
the respect in which the principal is in breach.
Your demand for payment must also be accompanies by the following documents:
Proof of identity certificate issued and signed by our branch in beneficiary’s country or else one of our corresponding bank’s located in beneficiary’s country stating that the bank has verified beneficiary’s signature(s) appearing on the first demand of payment.
This guarantee shall expire on 15.October.2014 at the latest.
Consequently any demand for payment under it must be received by us at this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC publication No. 758.
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