A bid Bond is issued as part of a supply bidding process by a contractor to a project owner, in the hope that it would guarantee that the winning bidder will undertake the contract under the terms at which they bid.
The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds.
The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds. A Bid Bond of amount not above 10% of the contract order total amount is deposited when a contractor, or the “supplier”, is bidding on a tendered contract. At Sumac Microfinance Bank we are here to assist you in getting it all under the same roof.