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Anonymous
2019-02-20 08:20:29

BID BOND (TENDER BOND) BEST PRACTICE

Bid Bond (Tender Bond) submission is one of the main requirements for most types of tenders, to assure the real interest of the bidders to participate on that bid.
We seek to get the best practice and to share your experience for the below aspects related to the Bid Bond:
- Amount of the Bid Bond (%)(For Turnkey projects also, for frame , unit rate scope )
- Time of verifying the Bid Bond, (With technical opening or with Commercial opening or when?)
- How do you think about fixing a certain exact amount of BB for each Project; regardless of the bidders offers value.
- Regarding the time of releasing the Bid Bonds for the winning bidders(After signing LOI/LOA/ Contract, after getting the Performance Bond, after expiry of the Contract, or When?)
- Best practice for BB validity(6 month, 1 year, or open renewable).
 
 •  H-Energy Private Limited  •   2019-03-08 08:46:07
-Bid Bond is generally kept as 1%-3% of the estimated Budget and all Bidders should be requested to submit the Bid Bond of the same value, in a Bid Bond format to be provided by the Company in the Bid document.

-The Bid Bond must be verified at the time of opening the Bids. In most of the government tenders , Bids are rejected if the Bid Bond with correct amount and validity is not accompanied along with the Bid.

-Bid Bond must be valid up to the time requested in the Bid document for the validity of Bids.In case of extension requested for validity of Bids from the Bidders the Bid Bond must also be extended accordingly.

-Bid Bond should be released within 30 days after the announcement of successful Bidder / immediately if the tender is cancelled.

I hope the above shall suffice.
 
 
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