Document background
The Performance Guarantee In Tender is a crucial document in German tender processes, particularly for high-value public and private sector procurement. It serves as a risk mitigation tool for tender issuers, ensuring serious participation from bidders and providing financial security against non-compliance with tender obligations. The guarantee amount typically ranges from 1% to 5% of the tender value, depending on project size and requirements. This document is commonly required in public tenders under German procurement law (Vergaberecht) and must comply with both German Civil Code (BGB) provisions regarding guarantees and relevant banking regulations. The guarantee remains valid throughout the tender process and usually expires when either the tender is awarded to another bidder or when replaced by a performance bond if the principal wins the tender.
