Bid Bond Bank Guarantee Template for United Arab Emirates

The Bid Bond Bank Guarantee is a crucial document in the UAE tendering process, required by project owners and government entities to ensure serious participation in tenders and protect against bidders withdrawing their offers. This guarantee is issued in accordance with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and UAE Central Bank regulations. The document contains specific details including the guarantee amount, validity period, beneficiary details, and conditions for calling the guarantee. It becomes particularly important in high-value tenders where project owners need security against potential losses from non-compliant bidders. The guarantee typically remains in effect until the tender is awarded and is either returned to unsuccessful bidders or replaced with a performance bond by the successful bidder.

1. Bank Details and Reference: Letterhead and reference number of the issuing bank

2. Date: Date of issuance of the guarantee

3. Beneficiary Details: Full name and address of the party receiving the guarantee (typically the project owner or tender issuer)

4. Guarantee Number: Unique identification number of the guarantee

5. Tender/Project Reference: Reference to the specific tender or project for which the bid bond is issued

6. Principal Details: Full name and address of the bidder/contractor on whose behalf the guarantee is issued

7. Guarantee Amount: The specific amount of the guarantee in both figures and words

8. Guarantee Period: Validity period of the guarantee including start and end dates

9. Guarantee Terms: Core terms including payment obligations and conditions for calling the guarantee

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction

11. Authorized Signatories: Space for bank officials' signatures and bank stamp