A bank guarantee that is requested by a beneficiary to ensure that the contractor is bidding in good faith and will enter the contract if awarded is called a a. performance guarantee. b. repayment guarantee. c. maintenance guarantee. d. tender guarantee.

Question

Business

Grace Eaton

1 May, 21:56

A bank guarantee that is requested by a beneficiary to ensure that the contractor is bidding in good faith and will enter the contract if awarded is called a a. performance guarantee. b. repayment guarantee. c. maintenance guarantee. d. tender guarantee.

+2

Answers (1)

Know the Answer?

Barbara Clayton · Answer 1

(D) tender guarantee.

Explanation:

Tender guarantee is a bank guarantee by which the tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee within the preset time once winning the bid or the guarantor undertakes to pay to a beneficiary certain amount of money if a tender participant (guarantee principal) revokes its bid during the bidding process or refuses to conclude contract in accordance with conditions of the accepted tender (bid).