Bid Bond الضمان الابتدائي
Definition
A bank guarantee attached to the offer, usually 1% to 2% of its value, securing the bidder’s seriousness and that they will not withdraw their offer or refuse to sign the contract after award.
Example
An offer was rejected for want of a bid bond despite its competitive price.
Where it is used
A condition of accepting an offer in government and many private tenders.
Related terms
From the term to the work
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