The Bid Bond Tender Guarantee is a fundamental document in competitive tender processes, particularly common in Hong Kong's construction, infrastructure, and government procurement sectors. This guarantee is required when organizations want to ensure serious participation in their tender processes and protect themselves against non-performing bidders. The document is typically issued by a Hong Kong licensed bank and must comply with Hong Kong banking regulations and common law principles. The guarantee amount is usually between 1-5% of the tender value, and the document remains valid throughout the tender evaluation period until either the tender is awarded and a performance bond is provided, or the tender process is concluded without award to the relevant bidder. The Bid Bond Tender Guarantee must clearly state the conditions for calling on the guarantee, which typically include withdrawal of the tender before the validity period expires, failure to sign the contract if awarded, or failure to provide the required performance security.

1. Parties: Identifies the guarantor (usually a bank), the beneficiary (tender issuer), and the principal (bidder)

2. Background: Brief context about the tender, including tender reference number and project description

3. Definitions: Key terms used in the guarantee, including 'Tender', 'Guaranteed Sum', 'Expiry Date'

4. Guarantee and Undertaking: Core section stating the guaranteed amount and bank's unconditional undertaking to pay

5. Conditions for Payment: Circumstances under which the guarantee can be called upon and payment procedure

6. Duration and Expiry: Validity period of the guarantee and conditions for expiry or extension

7. Payment Mechanics: Specific details about how payment will be made when the guarantee is called

8. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes