Introduction

A written document issued by the Bank at the request of the tenderee for bids of construction and procurement of project, committing that the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee within the preset time once winning the bid.

Features

1. Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, the Bank involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.

2. Reduce the financial pressure. As an alternative to cash margin, it can reduce tied up fund of the tenderer.

3. Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.