TenderBoard

Glossary

Bid security

Also called Bid bond, Tender security, Bid guarantee

A guarantee, usually from a bank or an insurance company, submitted with your bid. The buyer can claim it if you withdraw your bid after the deadline or refuse to sign the contract after winning.

The notice states the amount, the accepted form and how long it must stay valid. It is released when the procurement is concluded.

Not the same as

  • Bid feeA non-refundable payment to buy the bidding document.
  • Performance securityGiven by the winner after award, and held until the work is done.
  • Bid-securing declarationA signed promise instead of a guarantee, used on some small procurements.