Question
What type of performance guarantee is given in case of public tenders?Â
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.
More Financial Management Questions
- A company’s quick ratio is 1.2. If inventory were purchased for cash, the:
- Which of the following statements correctly describes the requirements for filing an information memorandum under the shelf prospectus regulations?
- With reference to ‘International Investment Position (IIP)’, consider the following statements: 1.India has a negative Net IIP. 2.The Net IIP position dete...
- As per Companies Act, every company shall have at least one director who stays in India for a total period of not less than _____ during the financial year...
- Under the RBI's 'Large Exposures Framework' (LEF), the sum of all exposure values of a bank to a single counterparty must not exceed what percentage of the...
- Net working capital is defined as?
- As per the Union Budget 2025–26, what is the amount allocated for the Modified Programme for Development of Semiconductor and Display Manufacturing Ecosyst...
- NFRA (National Financial Reporting Authority) has the power to debar an individual auditor or firm registered with the ICAI for up to ________, in case of ...
- What is encouraged for proper incident reporting in reporting procedures?
- Herzberg’s hygiene factors lead to which of the following?
Relevant for Exams:
