Document background
The Performance Bank Guarantee In Tender is a crucial document in German tender proceedings, typically required when participating in significant public or private sector tenders. It serves as a financial security instrument where a bank guarantees the bidder's performance obligations during the tender process. This guarantee is particularly important in high-value tenders within Germany, where it provides protection to the tender issuer against bidders who might withdraw their bids or fail to honor their commitments. The document must comply with German banking regulations, contract law (BGB), and public procurement requirements where applicable. It typically represents a percentage of the tender value and remains valid throughout the tender process until either the contract is awarded to another bidder or the successful bidder provides the required performance security.
