Bid Bond
Definition
A bid bond is a type of surety bond provided by a bidding contractor as part of their tender submission, guaranteeing that they will enter into a contract at the tendered price if selected. If the winning bidder declines to proceed, the bid bond provides financial compensation to the client, typically covering the difference between the winning bid and the next-lowest qualified bid.
In construction tendering, this means...
Bid bonds are more common in public sector procurement and large infrastructure projects than in typical commercial GC tendering. When required, they are usually set at between 5% and 10% of the tender value. Understanding whether a bid bond is required is an important pre-tender check for GCs considering a submission.
Takshy automates the parts of the tendering process that involve bid bond, extracting scope, managing documents, and keeping your workflow organised from first document to final award.
Automate your tendering with Takshy
Understanding the terminology is step one. Takshy handles the rest, from extracting scope from project documents to sending structured RFQs and managing the returns.
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