Bid Security Bank Guarantee Template for United Arab Emirates

The Bid Security Bank Guarantee is a crucial document in the UAE tendering process, required by tender issuers to ensure serious participation from bidders and protect against frivolous bids. This guarantee, regulated under UAE banking and commercial laws, is typically required to be submitted alongside the technical and commercial proposals in a tender submission. The document must be issued by a UAE-licensed bank and should clearly specify the guarantee amount, validity period, and conditions for calling upon the guarantee. The Bid Security Bank Guarantee represents an unconditional and irrevocable commitment from the bank to pay the specified amount upon first demand if the bidder fails to honor their bid commitments. The format and content must comply with local requirements, including proper authentication and specific language requirements as per UAE practice.

1. Bank Details and Reference Number: Bank's letterhead, branch details, and unique guarantee reference number

2. Beneficiary Details: Full name and address of the party receiving the guarantee (typically the tender issuer)

3. Principal Details: Full name and address of the bidder for whom the guarantee is issued

4. Tender Reference: Details of the tender/bid including tender number, project name, and date

5. Guarantee Amount: The amount of the guarantee in both figures and words, including currency

6. Bank's Undertaking: The core guarantee commitment from the bank, including conditions for payment

7. Validity Period: Clear start and end dates of the guarantee, including any automatic extension clauses

8. Claim Procedure: Process and requirements for making a claim under the guarantee

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

10. Authentication: Bank's authorized signatures, stamps, and any required authentication marks