Bid Bond (Tender)
Guarantees you'll honour your bid and sign the contract if you're awarded it.
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Bid · Performance · Advance Payment · InfrastructureContractors and infrastructure firms often have to lock up cash or collateral to give a bank guarantee. A surety bond does the same job — guaranteeing your performance to a project owner — but comes from an insurer, without blocking your working capital or margin money. It's an IRDAI-regulated product (allowed since 2022) increasingly accepted by government and private project owners.
A surety bond is a three-party guarantee: you (the Principal/contractor), the project owner you're contracting for (the Obligee), and the insurer that stands behind you (the Surety). The surety assures the obligee that you'll meet your contractual obligations — and compensates them, up to the bond amount, if you don't.
Getting the bond type and wording right — and the obligee's acceptance — is exactly where we add value.
Guarantees you'll honour your bid and sign the contract if you're awarded it.
Guarantees you'll complete the contract to the agreed scope, quality and timeline.
Secures an advance the obligee pays you, refunding it if you don't deliver.
Releases retained money back to you while still assuring the obligee of quality.
Guarantees a specific payment obligation under your contract.
Bonds required by government authorities, customs or courts.
Unlike a bank guarantee, a surety bond usually needs little or no collateral or margin money — keeping your cash and credit lines free for the business.
Surety capacity sits alongside your bank limits, so you can pursue more — and bigger — projects without exhausting your guarantee headroom.
Bid, performance, advance-payment or retention — each stage of a contract needs the right bond and the right wording.
Sureties underwrite on your balance sheet, track record and the project. Strong, ready documentation gets you better terms.
Government bodies (such as NHAI) and many private owners now accept surety bonds in place of bank guarantees — we confirm before you commit.
Surety is a newer, IRDAI-regulated product — using it correctly, with the right wording and a willing obligee, is exactly what a broker is for.
A three-party guarantee where an insurer (the surety) assures a project owner (the obligee) that you (the principal/contractor) will meet your contractual obligations. If you default, the surety compensates the obligee up to the bond amount.
Both guarantee your obligations, but a surety bond comes from an insurer and typically needs little or no collateral or margin money — freeing up the working capital and bank limits a guarantee would otherwise lock.
No. A surety bond protects the obligee, not you. If the surety pays a claim, you're required to reimburse it. It's a guarantee of your performance — not cover for your own losses.
Since IRDAI allowed them in 2022, government bodies (such as NHAI) and a growing number of private project owners accept surety bonds in place of bank guarantees. We confirm acceptance with your obligee before you commit.
The bond type, amount, tenure and your creditworthiness — your financials and track record. We help you present a strong case to secure competitive terms.
Tell us about your contract and we'll arrange the right surety bond at competitive terms.
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