bid bond

English - Turkish

Definition of bid bond in English Turkish dictionary: geçici teminat mektubu; inşaat ta geçici teminat; (Ticaret) geçici teminat mektupları; (Mukavele) teklif teminatı
bid bonds: (Ticaret) teminat tahvilleri

English - English

Definition of bid bond in English English dictionary: A surety bond often required of contractors bidding on construction work to ensure that the successful bidder will accept the job and will also provide a performance bond; A bond given by a bidder for a supply or construction contract to guarantee that the bidder, if awarded the contract within the time stipulated, will enter into the contract and furnish the prescribed performance and/or payment bond Default ordinarily will result in liability to the obligee for the difference between the amount of the principal's bid and the bid of the next low bidder who can qualify for the contract The liability of the surety is limited to the big bond penalty; When an exporter is bidding on a foreign contract, a bid bond guarantees that the exporter will take the contract if it is awarded If the exporter fails to take the contract, it will have to pay a penalty in the amount of the bond A bid bond is usually requested by a foreign organization to screen out weak contenders Your financial institution or the Export Development Corporation can assist in financing and issuing these bonds; A bid bond assures the owner that, upon acceptance of the contractor's proposal, the contractor will proceed to enter into a contract and will furnish performance and payment bonds if required by the bid documents Failure to satisfy these requirements generally leads either to forfeiture of the bid bond (usually in the penal sum of 5% to 20% of the bid) or more commonly, payment of the difference between the bidder's price and the second low bidder's price or the bond amount, whichever is less Bid bonds are often required on public projects where formal competitive bidding is required, but are less frequently used on private projects; A bond covering a bid; A bond filed with a bid for a construction or other project which guarantees that if the contractor has the low bid and is awarded the job, the required performance bond will be furnished; A written form of security executed by the bidder as principal and by a surety for the purpose of guaranteeing that the bidder will sign the contract, if awarded the contract, for the stated bid amount The Surety is a third-party that makes a pledge to pay liquidated damages to the owner to the extent of the difference between the bonded contractor bid and the next highest bidder but not to exceed the face value of the bond; if the bonded contractor declines an award offered by the owner; Bond submitted with a construction bid which guarantees the contractor's acceptance of the contract at the bid price; Bond, guarantee, or standby letter of credit that accompanies a bid, issued for an amount that will be forfeited if the bidder wins the bid but then reneges; A bid bond is given by a bidder for a construction contract to guarantee that the bidder, if awarded the contract within the time stipulated, will enter into the contract and furnish any performance and payment bonds that may be required; Guarantees an owner, the "obligee," that the accepted contractor will actually undertake the work and that the contractor will furnish performance, payment, and, perhaps, maintenance bonds - or that the contractor will pay the owner the difference between the amount of the contractor's accepted bid and the bid of another contractor who has to be called in to complete the project; Expression common in export financing A party, usually a bank, guarantees under a bid bond (on the instructions of the seller) to pay part of the bid price (about 5–10%) in case the seller, after acceptance of the bid by the buyer, is not willing or able to conclude the corresponding delivery or performance contract or provide the necessary performance guarantee; A company or an individual bidding on a contract will sometimes be required to post a Bid Bond or Tender Bond In such cases, the company requesting bids will be protected if the company selected is not able or willing to enter into a contract; A financial guarantee given in support of the obligation of a bidder to sign a contract if he is successful in his bid; Guarantees a bidder will enter into a contract are recommended for award; When bidding for a foreign contract, a bid bond guarantees the exporter will take the contract if awarded If the exporter fails to take the contract, it will pay as a penalty the amount of the bond A bid bond is usually requested by an organisation to screen out weak contenders Your bank can assist in the finance and issue of these bonds; A bond requested by a project owner, used as bid security, to pre-qualify a potential bidder and determine their capability of obtaining a performance and payment bond; A guarantee that the contractor will enter into a contract, if it is awarded to him, and furnish such contract bond (sometimes called "performance bond") as is required by terms thereof; also called a guarantee of maintenance of bid, it is a guarantee of payment in favor of the Borrower if the bidder that is selected for award fails to sign the offered contract In other words, it is a guarantee that the offer will remain effective for the period stipulated in the contract documents (See performance guarantee )
bid bonds: A bid bond guarantees that the bidder (principal) will actually enter into the contract at the bid price stated and will provide the required performance and payment bonds to the owner (obligee) To Surety Products page To list of terms above
bid bonds: Provided to an owner of a project promising that the contractor bidding will enter into a contract and furnish the necessary contract bonds if the bid is accepted
bid bonds: Bonds which guarantee that a contractor will enter into a contract at the amount bid and post the appropriate performance bonds These bonds are used by owners to pre-qualify contractors submitting proposals on contracts These bonds provide financial assurance that the bid has been submitted in good faith and that the contractor will enter into a contract at the bid price