Contracts are awarded generally through the process of bidding. Usually, notice of tender is published in newspapers where the beneficiary ask every bidder either to deposit an earnest money, which is normally 2 to 10% of the bidding amount, or to present a bank guarantee of a reputed bank for the same amount. Beneficiary uses that guarantee as a security in case the bidder refuses to accept the contract. A bank guarantee designed to serve that purpose is a Bid Bond. Our Bid Bonds are widely accepted by national and international organizations.
A bank guarantee issued to the beneficiary to ensure the performance of the bidder is a Performance Bond. Once a contract is awarded to a bidder, s/he has to perform the specified job as per the terms and conditions mentioned by the beneficiary in the contract. To be assured of the bidder's performance, the beneficiary requires a bank guarantee from the bidder. If the bidder fails to perform as per the terms and conditions of the contract, the beneficiary can invoke the guarantee and claim the stated amount from the guarantee-issuing bank.
We issue Performance Bond at a competitive rate.