Tender Bond is required by a Contractor during the submission of tenders for contract jobs to the Principal. The main purpose of the Tender Bond is to guarantee that the contractor who is awarded the contract will undertake the contract under the terms at which the contractor has submitted and is capable of providing a Performance Bond thereafter.
A Performance Bond is required in the event a Contractor’s tender has been accepted by the Principal and a Letter of Award is issued. The main purpose of the Performance Bond is guarantee that the Contractor fulfils the contractual obligations towards the completion of the contract.
Advance Payment Bond
Advance Payment Bond is required when a Contractor applies for an advance payment from the Principal to help fund the preliminary costs and mobilisation works of the contract. The main purpose of the Bond is to guarantee that the Contractor is able to make repayments for the advanced fund. The mode of repayment is through deduction or recoupment from subsequent progress payments, the quantum of which is determined by the Principal.