Tender Guarantee

The tender guarantee, also known as a tender bond or bid bond is a written document issued by Bank at the request of the tenderer during the tender process for bids of construction or procurement of a project giving assurance of their performance guarantee. With a tender guarantee, the bank undertakes to pay the beneficiary a certain amount of money if the tenderer withdraws or amend his bid during the validity period of the bid or refuses to comply with the terms of the contract.