Home / Practical Guidance and Legal Research / Legal Glossary / Bid bond
See All Glossary Terms
See All Glossary Terms
- practice notes (3)
GLOSSARY
Published by a LexisNexis Construction expert
What does Bid bond mean?
Also known as a tender bond (or guarantee). These are used as part of the tender process to guarantee performance by tendering contractors (more commonly in international projects). Bid bonds typically operate so that the surety will pay out to the employer (subject to maximum sum specified in the bond) in the event that the successful tenderer fails to perform the contract—a tender bond gives the employer comfort that tenderers are able to perform the contract on the basis of the bids submitted by the tenderers. They are usually issued as on-demand instruments.
View the related practice notes about Bid bond
Performance bonds in international supply contracts
Performance bonds in international supply contracts This Practice Note, Performance bonds in international supply contracts, sets out an introduction to some common types of performance bonds used in international supply contracts such as pre-qualification bonds, tender (or bid bonds), advance payment bonds (APB), maintenance bonds, completion bonds, retention bonds, customs bonds and facility bonds. Performance bonds are used on many projects in order to provide security to the customer against the supplier's non-performance. The Practice Note also considers how trade sanctions and embargoes may affect the performance of contractual obligations in international contracts for which a bond may be required. This Practice Note does not consider letters of credit which are most commonly used in international supply contracts to provide a secure method of payment under the sales contract between the buyer and seller, as protection for the supplier against the creditworthiness of the buyer. For guidance on letters of credit, see: Letters of credit—overview and Practice Note: Characteristics of commercial letters of credit. This Practice Note also...
Read More
Export Credit Agencies and export credit support
Export Credit Agencies and export credit support Exporters who wish to take their goods or services to overseas markets will often face significant risks in their endeavours to generate new business. The likelihood of non-payment in these environments is heightened in the face of enhanced: • commercial risk (ie failure to pay by an overseas buyer, overseas buyer's insolvency, unilateral breach of contract, non-performance of the asset or non-payment by off-takers), and • political risk (ie the risk that government action or political circ*mstances will have an adverse effect on local business and/or international investment) For certain goods or services or in certain markets, these risks may substantially inhibit the availability of commercial financiers, meaning that in the absence of Export Credit Agency (ECA) assistance, many such projects may never get off the ground. ECAs exist to step into this gap and help mitigate the commercial and/or political risks inherent in dealing with an overseas business, providing an important source of financial support to project developers,...
Read More
Discover our 3 Practice Notes on Bid bond
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.
Access this content for free with a 7 day trial of LexisNexis and benefit from:
- Instant clarification on points of law
- Smart search
- Workflow tools
- 41 practice areas
'); $('.cs_maintext2 a').remove() $('.cs_maintext2').append('GET CERTIFIED') } else { var retrievedSegment = localStorage.getItem('Ln_DB'); if (retrievedSegment != null && retrievedSegment != '' && retrievedSegment != undefined) { var lnDB = JSON.parse(retrievedSegment); var userCompany = lnDB["Company_Name"]; if (userCompany.toLowerCase().indexOf("university") > -1 || userCompany.toLowerCase().indexOf("college") > -1) { //change the header $('h4.glossary').text(userCompany + " GLOSSARY"); //remove trial from light house $('.button_grp .trailbtn').remove() //change section CTa to GET CERTIFIED $('.takefreetrialbtn a').remove(); $('.takefreetrialbtn').append('GET CERTIFIED') //change bottom CTA $('.freetrail_bottomtext .bottom_text').text("Quickly access all the law you need with our modern user-friendly tools. Develop your legal knowledge so you’re ready for the working world."); $('.takefreetrail_main button').remove(); $('.takefreetrail_main').append('Existing user? Sign-in'); $('.takefreetrail_main').css('width', 'fit-content'); //change RHS CTA $('#floating-rhs-cta').remove(); $('.rhs_side').append('
Login
'); $('.cs_maintext2 a').remove() $('.cs_maintext2').append('GET CERTIFIED') } } } } $('#accordion').on('hidden.bs.collapse', function () { $('#defaultdiv').show("50"); }); $('#accordion').on('shown.bs.collapse', function () { $('#defaultdiv').hide("0"); }); if (window.matchMedia("(max-width: 767px)").matches) { if (!($('.desktop-30').length > 0) ) { $('.sub-titles').hide(); } else { } } var countOfDocs = 3 + 0 + 0 + 0 + 0 + 0; if (countOfDocs > 0) { $('#total-doc-number').text(countOfDocs); } const url = "https://plus.lexis.com/uk/legalresearch"; const parseResult = new DOMParser().parseFromString(url, "text/html"); const parsedUrl = parseResult.documentElement.textContent; const title = "bid-bond"; var utmParam = "?utm_source=psl_da_mkt&utm_medium=referral&utm_campaign=" + title; if (parsedUrl.indexOf('?') > -1) { utmParam = "&utm_source=psl_da_mkt&utm_medium=referral&utm_campaign=" + title; } var isArchived='False'; if (isArchived == 'True') { $("#login-psl").attr("href", parsedUrl + utmParam); $("#login-student-cta").attr("href", parsedUrl + utmParam); $("#login-student-rhs-cta").attr("href", parsedUrl + utmParam); $("#HDR-SP-SIGN-IN").attr("href", parsedUrl + utmParam); $(".signBtn.btn-popupArchived").attr("href", parsedUrl + utmParam); } else { $("#login-psl").attr("href", parsedUrl + utmParam); $("#login-student-cta").attr("href", parsedUrl + utmParam); $("#login-student-rhs-cta").attr("href", parsedUrl + utmParam); $("#HDR-SP-SIGN-IN").attr("href", parsedUrl + utmParam); $(".signBtn.btn-popupArchived").attr("href", parsedUrl + utmParam); } }); var btn = document.getElementById('speaker'); speechSynthesis.cancel() var u = new SpeechSynthesisUtterance(); var synth = window.speechSynthesis; var voices = []; voices = synth.getVoices().sort(function (a, b) { const aname = a.name.toUpperCase(), bname = b.name.toUpperCase(); if (aname < bname) return -1; else if (aname == bname) return 0; else return +1; }); var isDaniel = voices.filter(x => x.name == "Daniel UK English Male"); if (isDaniel.length <= 0) { var v = voices.filter(x => x.name == "Google UK English Male"); if (v.length <= 0) { u.voice = voices[0]; } else { u.voice = v[0]; } } else { u.voice = voices[0]; } u.text = 'Bid bond'; var t; u.onstart = function (event) { t = event.timeStamp; }; u.onend = function (event) { t = event.timeStamp - t; }; if (btn != null || btn != undefined) { btn.onclick = function () { speechSynthesis.speak(u); }; } //Set Timeout Function start setTimeout( function () { var isArchived='False'; if (isArchived == 'True') { document.getElementById("overlay").style.display = "block"; } }, 3000); //Set Timeout Function end
Powered by Lexis+®
Case studies
"Everything at Advocates is done on a timed basis, so we need to conduct our research efficiently. We don't want to charge clients unnecessarily or write off our time. With Lexis products, we can get more research done each day"
Advocates
Access all documents on Bid bond
Top 