Companies can tender for public and private contracts. They are then bound by their tender for a particular period of time. The bid or tender bond insures the contracting party against the risk that a contractor (tenderer) will not follow through on its tender. The damage the contracting party suffers as a result, the extra time and effort it must put into once again assessing the tenders from the other contractors.
- A bid and tender bond shows good creditworthiness of your company