Family Bank Bid Bonds

Family Bank Bid Bonds

Tender or Bid bonds are undertakings given by a bank in support of a contractor/supplier bidding for work contract. They are normally submitted with other documents asked for in the invitation to tender and remain valid during the period of tender, plus a grace period to allow the beneficiary to make demand. The aim of the tender bonds is to provide the beneficiary with a financial remedy if the applicant fails to fulfill any of the tender conditions.
Family Bank Bid Bonds(Image credit:Family Bank)

Key Elements of the Bid Bonds

  • They are used during the bidding stage
  • They are usually between 2% to 5% the value of the bid
  • They are used to alleviate the cost of non-performance during the contract award period stage
  • The duration of the tender normally lasts between 30 to 150 days

Special Features of Family Bank Tender/Bid Bonds

  • They are unsecured up to Ksh. 3 Million
  • They can be issued within 1 hour after receipt of complete application
  • They can be used at any of the Family bank branches in the country
  • The rates at Family bank are both affordable and competitive

Application Requirements

The application is guaranteed by the following details
  • Applicant's name
  • Beneficiary name
  • Amount 
  • Duration of the bid bond
  • Purpose of the Bid bond
A copy of the tender dopcument showing the above details(if available)
Tender/Bid Bond format

Other Types of Guarantees offered by Family Bank include;

  •  Performance Bond on flexible terms including 50% cash cover
  • Advance payment guarantee
  • Payment guarantee
  • Facility Guarantee (to secure a credit line)
  • Government Bonds; Custom Bonds, Transit Bonds, Immigration/security Bonds etc

Family bank also has the capacity and expertise to issue other forms of guarantees not mentioned above

Other Trade Finance Products Aavailable at Family Bank includes;

  • Letters of Credit
  • Collections
  • Invoice discounting
  • LPO finance
  • Post Import Finance
  • Structured Trade Finance

Information courtesy of Family Bank