Sample of English Bid Bond

A bid bond is a financial guarantee that a contractor provides to a project owner to ensure that the contractor will honor their bid and enter into a contract if awarded the project. It is a common requirement in the bidding process for construction projects. This article will provide a sample of an English bid bond, outlining its key components and format.

[Your Company's Letterhead]

[Address]

[City, State, ZIP Code]

[Phone Number]

[Email Address]

[Date]

[Project Owner's Name]

[Project Owner's Company]

[Address]

[City, State, ZIP Code]

Dear [Project Owner's Name],

Re: Bid Bond for [Project Name]

With reference to the above-mentioned project, we, [Your Company's Name], hereby submit our bid bond, in compliance with the terms and conditions of the project outlined in the invitation to bid.

1. Party Details:

a) [Your Company's Name]:

- Legal Name: [Legal Name]

- Registered Address: [Registered Address]

- Contact Person: [Contact Person]

- Phone Number: [Phone Number]

- Email Address: [Email Address]

b) [Surety Company's Name]:

- Legal Name: [Legal Name]

- Registered Address: [Registered Address]

- Contact Person: [Contact Person]

- Phone Number: [Phone Number]

- Email Address: [Email Address]

2. Bid Bond Details:

a) Bond Amount: [Specify the amount of the bid bond in the required currency]

b) Effective Date: [Specify the effective date of the bid bond]

c) Expiry Date: [Specify the expiry date of the bid bond]

d) Project Name: [Specify the name of the project]

e) Project Owner: [Specify the name of the project owner]

f) Project Location: [Specify the location of the project]

3. Bond Terms and Conditions:

a) Our bid bond is valid for the duration specified by the project owner or until the successful bidder is awarded the project, whichever occurs first.

b) The bond amount is payable to the project owner in the event that we fail to honor our bid, refuse to enter into a contract, or withdraw our bid within the specified bid validity period.

c) The bond shall remain in force and effect until the completion of the bid evaluation process and the successful bidder is awarded the project.

d) Any claims against this bid bond must be made in writing and received by the surety company within the validity period of the bid bond.

e) If we are awarded the project, this bid bond will be discharged upon the execution of the formal contract and the provision of any additional performance or payment security as required.

4. Governing Law and Jurisdiction:

This bid bond shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any disputes arising out of or in connection with this bid bond shall be submitted to the exclusive jurisdiction of the courts of [Jurisdiction].

Please find attached our bid bond, duly executed and sealed by both our company and the surety company.

Should you require any further information or clarification, please do not hesitate to contact us.

Thank you for considering our bid for the [Project Name]. We look forward to the opportunity to work with you.

Yours sincerely,

[Your Name]

[Your Position]

[Your Company's Name]