Tender Guarantee
A Tender Guarantee is issued by the Bank at the request of the Tenderee, for bids of construction or procurement of projects, 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 once the bid is won. A tender guarantee is a monetary guarantee that confirms the ability of a participant in a public or commercial procurement to fulfill its obligations to the customer: to deliver goods of the required quality and on time, to provide a service, or perform work.
Application Procedure
- The applicant fills out an application form or a contract for issuance of a letter of guarantee and tenders same to the bank along with the specimen guarantee format required by the beneficiary.
- The applicant pays margin as per the banks requirement.
- Examination and issuance of letter of guarantee if as per the banks tender guarantee format.
- If the format defers from the banks guarantee format same could be referred for legal advice.
- If covered by 100 % cash margin, the bank may issue the guarantee after obtaining sanctions from the credit authority
- Upon customer qualification, underlying transaction and relevant documents we confirms the customer’s margin or credit line and other mortgages
- Financial Institution issues the letter of guarantee.
