Document background
The Bid Bond Tender Guarantee is a crucial document in Pakistani tender processes, particularly for public procurement and large-scale private projects. It is required when companies participate in competitive bidding processes to demonstrate their serious intention and financial capability to undertake the project. The guarantee typically amounts to 1-5% of the bid value and remains valid throughout the tender evaluation period. This document, governed by Pakistani law, provides protection to tender authorities against non-serious bidders and ensures that winning bidders will proceed with the contract execution. The guarantee can be called upon if the bidder withdraws their bid during its validity period, fails to sign the contract, or doesn't provide required performance securities after winning the tender.
