Introduction

When participating in a bidding process, it is often required to submit a bid bond or tender guarantee. This document, known as a bid bond or tender guarantee letter, serves as a financial commitment from the bidder to the client, ensuring that if they are awarded the contract, they will fulfill their obligations. In this article, we provide a sample bid bond letter in English.

Sample Bid Bond Letter

Dear [Client's Name],

We, [Bidder's Company Name], hereby provide this bid bond letter to support our bid for [Project Name] in accordance with your tender documents dated [Date].

In consideration of your commitment to evaluate our bid fairly and impartially, we hereby pledge an amount of [Bid Bond Amount] as a guarantee of good faith. This amount is equivalent to [Percentage]% of our bid price for the project.

Conditions

This bid bond letter is subject to the following conditions:

1. The bid bond shall remain valid until [Validity Date], which is [Number of Days] days after the submission deadline.
2. If we are successful in winning the contract, we undertake to furnish the required performance bond within [Number of Days] days from the notification of award.
3. In case we fail to meet our obligations, you are entitled to encash the full amount of the bid bond without prior notice.
4. This bid bond letter cannot be withdrawn or canceled by us unilaterally.

Conclusion

[Bidder's Company Name] assures that should we be awarded the contract, we will execute the project in accordance with the terms and conditions outlined in the tender documents. We understand that any failure to fulfil our obligations may result in the encashment of the bid bond by [Client's Name].

Please acknowledge receipt of this bid bond letter by signing and returning a copy within [Number of Days] days from its receipt.

Thank you for considering our bid.