Bid Bond

The bid bond is the amount taken by contracting authorities as a guarantee of participation in a tender, serving to secure the tenderer's adherence to its tender, its willingness to sign the contract and the reliability of the tender process, and whose amount, form, period, return and forfeiture are governed by Law No. 4734 and the secondary legislation. Under the procurement legislation, security is of three kinds: the bid bond, the performance bond and the additional performance bond. The bid bond is set at not less than 3% of the tender price.