Bid Bond Tender Guarantee Template for Germany

The Bid Bond Tender Guarantee is a crucial document in German public and private procurement processes, required when companies participate in significant tenders or bid submissions. This guarantee, governed by German law, provides security to the contracting authority that the bidder will maintain their bid and execute the contract if successful. The document typically represents 1-5% of the bid value and remains valid throughout the tender process and sometimes beyond contract award. It must comply with German Civil Code (BGB) requirements for guarantees and public procurement regulations. The Bid Bond Tender Guarantee becomes particularly important in high-value tenders where the contracting authority needs protection against bidders withdrawing their offers or failing to proceed with contract execution. The document includes specific details about the tender, parties involved, guarantee amount, validity period, and precise conditions under which the guarantee can be called.

1. Parties: Identification of the Guarantor (usually a bank or insurance company), the Principal (bidder), and the Beneficiary (contracting authority)

2. Background: Brief description of the tender process, including tender reference number and project description

3. Definitions: Definition of key terms used in the guarantee, including 'Tender', 'Bid', 'Guarantee Amount', and 'Expiry Date'

4. Guarantee Commitment: Express statement of the guarantee amount and unconditional commitment to pay upon first demand

5. Tender Reference: Specific details of the tender process being guaranteed, including submission deadline

6. Conditions for Payment: Circumstances under which the guarantee can be called, typically including withdrawal of bid or failure to sign contract

7. Validity Period: Clear statement of when the guarantee becomes effective and when it expires

8. Form of Demand: Requirements for making a valid demand under the guarantee

9. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction clause