The Bid Bond Bank Guarantee is a fundamental document in tender processes under Maltese law, typically required where organizations wish to participate in significant procurement or project tenders. This document serves as a financial security instrument, protecting the tender issuer against potential losses should the winning bidder fail to proceed with the contract or meet their obligations. The guarantee must be structured in accordance with Maltese banking regulations and procurement laws, particularly the Banking Act (Chapter 371) and Public Procurement Regulations (S.L. 601.03). It includes specific details about the tender, the guaranteed amount (usually 1-5% of the bid value), validity period, and clear triggering events for payment. The document is particularly crucial in high-value tenders where the tender issuer needs protection against non-serious or speculative bids.

1. Bank Details and Reference: Header with bank letterhead, reference numbers, and date of issuance

2. Beneficiary Details: Full name and address of the entity receiving the guarantee (usually the tender issuer)

3. Principal Details: Full name and address of the bidder/tenderer on whose behalf the guarantee is issued

4. Tender Reference: Clear identification of the tender/bid process including tender number and description

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

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

7. Trigger Conditions: Specific conditions under which the guarantee can be called upon

8. Validity Period: Clear start and end dates of the guarantee, including any automatic extension clauses

9. Claim Process: Procedure and requirements for making a claim under the guarantee

10. Governing Law and Jurisdiction: Specification of Maltese law as governing law and relevant jurisdiction

11. Bank Execution Block: Authorized signature block with bank official stamps and seals