The Bid Bond Tender Guarantee is a crucial document in Maltese public procurement procedures, required when participating in significant public tenders. It serves as a risk mitigation tool for contracting authorities, ensuring that only serious bidders participate in the tender process. The guarantee typically amounts to 1-2% of the bid value and remains valid throughout the tender evaluation period. Under Maltese law, this document must comply with the Public Procurement Regulations (S.L. 601.03) and related EU directives. The Bid Bond Tender Guarantee becomes particularly important in high-value tenders where the contracting authority needs protection against bidders who might withdraw their offers or fail to proceed with the contract award. It includes specific provisions for demand and payment, validity periods, and conditions for release of the guarantee, all structured to meet both local and EU procurement requirements.

1. Parties: Details of the Principal (tender issuer), the Bank/Financial Institution issuing the guarantee, and the Bidder/Tenderer

2. Background: Context of the tender, reference to the tender documentation, and purpose of the bid bond

3. Definitions: Key terms used in the guarantee including 'Tender', 'Bid Amount', 'Guarantee Amount', 'Expiry Date'

4. Guarantee Amount: Specification of the amount of the guarantee, typically expressed both in numbers and words

5. Scope of Guarantee: The bank's undertaking to pay the guarantee amount upon demand and conditions for payment

6. Conditions for Calling the Guarantee: Specific circumstances under which the guarantee can be called, such as withdrawal of bid or failure to sign contract

7. Duration and Validity: Period of effectiveness of the guarantee, including start date and expiry date

8. Demand Requirements: Format and procedure for making a claim under the guarantee

9. Governing Law and Jurisdiction: Specification of Maltese law as governing law and jurisdiction of Maltese courts