Tender security and performance security in Bangladesh e-GP

What tender security is

Tender security (bid security) is the money a bidder pledges so the bid stays firm until it expires. It is returned once the tender is decided.

Accepted instruments

• Bank draft or pay order from a scheduled bank
• Bank guarantee on the format given in the tender document
• Insurance guarantee where the tender document allows it

Validity

Tender security must stay valid for at least 28 days beyond the bid validity period. Check the exact dates written in the tender document, not the ones you assume.

When it is forfeited

• Withdrawing the bid inside the validity period
• Refusing to accept the notification of award
• Failing to give the performance security in time

Performance security after award

Performance security is given after the award and covers the contract until completion. It is normally a percentage of the contract price, stated in the tender document, and must stay valid past the defect liability period.

Before you submit

• Match the amount, currency and format to the tender document word for word
• Keep the original instrument ready for manual submission
• Note the expiry date in your own calendar