Bid Bond Tender Guarantee Template for Singapore

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Key Requirements PROMPT example:

Bid Bond Tender Guarantee

"Need a Bid Bond Tender Guarantee for a Singapore construction project valued at SGD 5 million, where the guarantee amount should be 2% of the bid value and valid until March 15, 2025, with DBS Bank as the guarantor."

Document background
A Bid Bond Tender Guarantee is a crucial document in Singapore's tendering process, particularly for high-value projects where the tender issuer requires security against bidder default. This guarantee, typically issued by banks or financial institutions, ensures that bidders remain committed to their bids and will proceed with the contract if successful. The document specifies the guaranteed amount (usually 2-5% of the bid value), validity period, and conditions for calling upon the guarantee. Under Singapore law, these guarantees are autonomous instruments, meaning they can be called upon independent of the underlying tender relationship.
Suggested Sections

1. Parties: Details of the guarantor (bank/financial institution), principal (bidder), and beneficiary

2. Background: Context of the tender and reason for the guarantee

3. Definitions: Key terms used in the guarantee

4. Guarantee Amount: Specific sum being guaranteed

5. Duration and Validity: Period of effectiveness and expiry conditions

6. Demand Requirements: Conditions and process for making claims

7. Governing Law: Specification of Singapore law as governing law

Optional Sections

1. Assignment Clause: Used when transfer of rights needs to be permitted - includes conditions and procedures for assignment

2. Counter-Indemnity: Principal's obligation to indemnify guarantor - typically included when required by guarantor's internal policy

3. Extension Provisions: Mechanisms for extending validity of the guarantee - included when tender process might be extended

Suggested Schedules

1. Form of Demand: Template for making claims under the guarantee

2. Tender Details: Specific details of the tender being guaranteed including project specifications

3. Authentication Procedures: Procedures for verifying authenticity of demands and communications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Contract Law of Singapore: Chapter 2 of Singapore Laws - Primary legislation governing contractual relationships and obligations in Singapore, fundamental for the formation and enforcement of bid bonds

Securities and Futures Act: Chapter 289 - Regulates financial instruments and securities, relevant for the issuance and trading of bonds and guarantees in Singapore

Banking Act: Chapter 19 - Governs banking institutions in Singapore who typically issue bid bonds and guarantees

Monetary Authority of Singapore Act: Chapter 186 - Establishes regulatory framework for financial institutions and their activities, including the issuance of bonds and guarantees

MAS Guidelines on Bankers' Guarantees and Bonds: Specific guidelines issued by MAS governing the issuance and management of bankers' guarantees and bonds in Singapore

BCA Requirements: Building and Construction Authority requirements specific to tender bonds in construction and development projects

Government Procurement Act: Legislation governing procurement processes for government entities, including requirements for tender guarantees

URDG 758: Uniform Rules for Demand Guarantees - International standard rules commonly used for demand guarantees and bid bonds

ICC Practices: International Chamber of Commerce practices and standards relevant to international trade finance and guarantees

ISP98: International Standby Practices - Rules governing standby letters of credit and similar instruments often used in international trade

Singapore Case Law: Relevant court decisions and precedents from Singapore courts regarding bid bonds and guarantees

Industry Standards: Specific tender requirements and standard practices within the relevant industry sector in Singapore

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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