Bid bonds

They allow the participation to public tenders for the awarding of contracts related to works, supply or services guaranteeing the enforcement of the contract. The policy is required by the law for the participation to public tender procedures: any Company that wishes to take part to a tender procedure has to submit one. The bond is aimed at guaranteeing the public contracting authority that the Company awarded the contract will actually sign it. The policy also covers the lack of technical requirements and financial requirements provided for by the tender notice. The policy has to indicate, as well, the commitment of the Insurer to underwrite a performance bond. The bond value is 2% of the value of the works provided for in the tender notice and can be reduced of 50% in case the Company has the required ISO certifications.

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