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Product Name
Tender Guarantee/Bid Bond
Product Description
A written document issued by Bank of China at the request of the tenderee for bids of construction and procurement of project, committing that the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee within the preset time once winning the bid.
Product Functions
Solve the problem of mutual mistrust between the tenderee and tenderer with bank credit to realize smooth tender offer; replace cash margin by the tender guarantee/bid bond to reduce the financial pressure of the bidders.
Product Features
1. Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, Bank of China involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties;
2. Reduce the financial pressure. As an alternative to cash margin, it can reduce tied up fund of the tenderer;
3. Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration.
Eligible Applicants
1. Contractors involved in contracted projects;
2. Suppliers involved in material procurement projects.
Application Requirements
1. The applicant shall hold a business license of legal person that has passed the annual inspection or other valid certificates which fully prove its legal operation and scope of business;
2. The applicant shall have the qualification to engage in relevant business (such as qualification of contracting foreign projects, construction qualification of building enterprise, etc.);
3. The applicant shall have a credit line at Bank of China, or pay full margin, or full guarantee acceptable to Bank of China.
Application Procedures
I. Application for letter of guarantee
1. The applicant fills out an application form or a contract for issuance of a letter of guarantee;
2. The applicant pays margin or submits other counter guarantee;
3. The applicant submits primary documents related to the contract;
4. The applicant submits other documents necessary for issuance of a letter of guarantee as required by Bank of China.
II. Examination and issuance of letter of guarantee
1. Bank of China examines the customer qualification, underlying transaction and relevant documents;
2. Bank of China confirms the customer's margin or credit line and other mortgages;
3. Bank of China examines the written application and form of the letter of guarantee;
4. Bank of China issues the letter of guarantee.
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