Bid bond guarantee is submitted to secure payment of security deposit (bid security) when your company is bidding in a tender. Acting upon your (i.e. the contractor's) order, Bank Millennium undertakes to pay in favour of the organiser of the tender the amount of bid security if your company defaults on the obligations set forth in the tender's conditions and/or conditions of the Public procurement law (for instance, if your company does not sign the agreement within the bid validity period).
The service is available online through the Trade finance module in the Millenet online banking system.
Benefits for the customer:
- You are building trust of your counterparties and better market position.
- You do not have to commit your funds to pay the bid security.
- You manage guarantees over the Internet under the Millenet online banking system.
Benefits for the counterparty - organiser of the tender procedure:
- He obtains sound security issued by the Bank in case the contractor defaults on the conditions of the tender.
- If need be, he will be able to satisfy his claims fast, irrespective of the contractor's financial situation, without court costs.