Bid Bond Bank Guarantee Template for Philippines

The Bid Bond Bank Guarantee is a crucial document in Philippine procurement processes, particularly under Republic Act No. 9184 and its Implementing Rules and Regulations. It is required when companies participate in public tenders or significant private sector projects, serving as a form of security that typically ranges from 1% to 2% of the bid amount. The guarantee ensures that bidders maintain the validity of their bids throughout the evaluation period and, if successful, proceed to contract signing and provide the required performance security. The document must be issued by a reputable bank authorized to operate in the Philippines and should comply with the format and requirements specified by the Government Procurement Policy Board (GPPB). This type of guarantee includes specific details about the tender, parties involved, guarantee amount, validity period, and conditions for calling upon the guarantee.

1. Bank Details and Reference Number: Full name and address of the issuing bank, guarantee/reference number, and date

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

3. Principal Details: Full name and address of the bidder for whom the guarantee is being issued

4. Bid Reference: Details of the bid/tender including project name, reference number, and submission deadline

5. Guarantee Amount: The specific amount of the bid security in both figures and words

6. Guarantee Statement: Clear statement of the bank's unconditional commitment to pay the guarantee amount

7. Validity Period: Specific duration of the guarantee, including start and end dates

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

9. Governing Law and Jurisdiction: Statement that the guarantee is governed by Philippines law and jurisdiction

10. Authorized Signatures: Space for bank officials' signatures with their names and titles