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    Question

    What type of performance guarantee is given in case of

    public tenders? 
    A Bank Guarantee Correct Answer Incorrect Answer
    B Bid Bond Guarantee Correct Answer Incorrect Answer
    C Letter of Credit Correct Answer Incorrect Answer
    D Deferred payment guarantee Correct Answer Incorrect Answer
    E Sovereign guarantee Correct Answer Incorrect Answer

    Solution

    A Bid bond guarantee is a type of financial bank guarantee that ensures that the winning bidder undertakes the contract as per the terms of their winning bid. This is used in public tenders to ensure that a bidder will follow through with a contract if they are chosen for a tender. If the bidder does not start work on the project of the tender, the project owner can use the bid bond to cover costs and losses.

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