Who can use this tender bond?
A developer, buyer. public authority or other organisation. It is also known as a bid bond.
What is this tender bond for?
It is for use by a company or organisation inviting tenders for a contract who require security against the risk of the successful bidder failing to enter into the contract. When that happens, it involves cost for the organisation as well as delay in the contract award process, especially on a high value project.
They need a document which, if it is called, gives them a reasonable amount to cover the potential disruption. In addition, the bond needs to be in an “on demand” form so that immediately the successful bidder defaults, the beneficiary can demand and obtain payment from the bank that issued the bond.
What does the tender bond contain?
A one page document with a few short paragraphs referring to:
- the project to which it relates
- The maximum amount of the bond
- the procedure for making a call
- the validity period
For more information, see our Explanatory Notes which you will receive when you download the document from our website.
When I download the document, can I change it and/or use it more than once?
Yes, you can. ContractStore’s templates are prepared in MS Word and are easy to edit. You can use it as often as you like in your business.
ContractStore is a publisher of legal templates, not a law firm. But we have well-qualified lawyers who prepare all our documents. So, we can arrange legal support if required. See our Legal Services page.
And if yo u want to contact us, see our Contact page
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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