A Bid Security Bank Guarantee is a crucial document in Australian tender processes, particularly in high-value sectors such as construction, infrastructure, and government procurement. It serves as a risk mitigation tool for tender issuers, ensuring that only serious bidders participate in the tender process. The guarantee typically amounts to 1-5% of the bid value and remains valid throughout the tender period and sometimes beyond contract award. This document, governed by Australian banking and contract law, includes specific details such as the guaranteed amount, validity period, beneficiary details, and claiming conditions. The Bid Security Bank Guarantee can be called upon if the bidder withdraws their bid during its validity period, fails to accept award of the contract, or fails to provide any required performance security.

1. Bank Details and Reference: Information identifying the issuing bank, branch, and reference number

2. Beneficiary Details: Full details of the party receiving the guarantee (typically the tender issuer)

3. Principal Details: Details of the bidder/tenderer for whom the guarantee is being issued

4. Tender Reference: Specific details of the tender/bid process this guarantee relates to

5. Guarantee Amount: The specific sum guaranteed, in both figures and words

6. Guarantee Statement: The bank's unconditional undertaking to pay the guaranteed amount

7. Validity Period: The time period during which the guarantee remains valid and enforceable

8. Claim Conditions: The process and conditions under which the guarantee can be called upon

9. Governing Law: Specification of Australian law as the governing law

10. Execution Block: Space for authorized bank signatories to execute the guarantee