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   BOC Singapore >> Corporate Banking >> Trade Finance >> Bank Guarantee

Bid Bond


 

Introduction

Bid Bond is a guarantee issued for submission together with tender documents for construction projects or for the supply of goods, in which it guarantees that the price quoted in the said tender documents would not be altered or cancelled within the tender period and if the tender is successful, would undertake to sign the respective contract or furnish any required performance bonds, etc as required within the specified period of time.

Product Features

1) Regulate and formalise the selection process of suppliers or contractors for big projects.

2) Mitigate the mutual distrust of parties involved in projects.

3) Ensure due compensation when contract is breached.

4) Suitable for companies tendering for projects.

Application Requirements

1) Legally registered in Singapore.

2) Maintain current account with our bank.

3) Companies must posses the proficiency in performance under the contract.

4) A credit facility or at least 100% cash margin or deposits must be provided(must be pre-arranged with the bank).

5) The format of the bankers guarantee that is to be issued must be acceptable to the bank(the format is subjected to review by the bank’s Legal Department).

Application Procedures

1. Applicant submits banker guarantee application form together with the documentary evidence showing the need for the Bid Bond eg the invitation for tender.

2. Applicant remits the cash margin or deposits into the Bank and submits the required documents eg deposit slip or Letter of set-off or Charge documents.

3. The bank evaluates customer and transaction information.

4. The bank reviews the banker guarantee application form, the format of the guarantee and checks the security documentation ie Letter of set-off, Charge documents, etc.

5. The bankers guarantee is issued.

Download Forms

Form_Banker's Guarantee Application & Indemnity.doc

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