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<p><p> For example, the government may have a project to build a new road and since it does not really have the capability to build it, they may bid out the project to the public. After publishing the project, it may require contractors to signify their intention to do the project by submitting a "bid bond." After several contractors have bidded for the project (through submitting a bid bond), the project proponent will then choose and announce the winning bidder. Once the winning bidder has been announced, it will then require the winner to submit a performance bond. Other bid bonds submitted by losing bidders will just die a natural death.
However,for the winning bidder, this "bid bond" will now be replaced by a "performance bond. Essentially, this "performance bond" assures the project proponent project completion. As stipulated in a written agreement, throughout the project, there will be certain milestones that the contractor will have to meet, failing which, there shall be corresponding penalties due the project proponent. On a worst case scenario, the contract can be rescinded and may be given to another contractor.
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Is bid Bond refundable and when?
The bid Bond is refundable to losers when the contract is awarded. It is a bank guarantee of a specified value issued by the guarantee to the seller such that he cannot withdraw his bid from the tendering process.
What is a payment bond and a Performance bond?
Performance bonds protect the obligee (obligee is the entity requiring the bond)Requiring a performance and payment bond will insure that the project will be completedIf the principal defaults in its performance set forth in the contract to the obligee and the contractor is unable to successfully perform the job, the surety assumes the contractor's responsibilities and ensures that the project is completed. Below are the four types of contract bonds that may be required1. Bid Bond which guarantees that the bidder on a contract will pierce into the contract and equip the mandatory payment along with performance bonds. 2. Payment Bond which guarantees payment from the contractor of money to persons who furnish labor, materials equipment and also supplies for use in the performance of the contract. 3. Performance Bond which warranties that the contractor will hold out the contract in pact with its terms. 4. Ancillary Bonds which are auxiliary as well as crucial to the performance of the contract. Source http://www.integritybonds.com
What is the difference between bid size and ask size in the stock market?
The bid size is how many shares a buyer wants to buy. The ask size is how many shares a seller wants to sell.
What is bond to bond trading?
Bond is a debt program which publish by government.i can give you basic bond trading idea.Most bonds are traded by bonds dealer.bond dealer ask price for bid,when someone buy that is the highest bond price.
Explain why the bid-ask spread is a transaction cost?
The bid-ask spread is the difference between the bid price (the amount of money you get when you sell) and the ask price (the amount of money it costs to buy). Since the ask price is higher than the bid price, it costs you more money to buy the asset than you would receive should you be selling the same asset. This spread is the price (along with a commission) for making the trade.
What is difference between bid security and Bid Bond?
There is no difference. Bid securities can come in different types. A bid bond is just one type of bid security.
If you use a bid bond and do not get awarded the contract do you get your money back?
No. The bid bond performed its function - allowing you to bid. This is why bid bonds are inexpensive. Had you been awarded the contract you would then need another bond, a "performance bond". This bond would be an extension of the bid bond and be priced equivalent to the value of the project. Yes. The above is incorrect atleast in the architecture/construction industry. Architectural handbook of professional practice 14 edition as reference. It is simply to insure a bidders intent to enter into contract if awarded the contract, and protect the owner if the bidder withdraws their bid
If issued a bid bond can surety not issue a payment bond?
Yes. If the bid spread is significant, and or if the financial situation of the contractor changes beyond the comfort level of the surety between the bid and award, or if the final bond is contingent on receiving info.
What is the types of letter of guarantee?
There are several types of letter of guarantee that include: 1. Tender Bond/ Bid Bond 2. Performance Bond 3. Advance Payment Bond 4. Retention Money Bond 5. Maintenance Bond 6. Financial/ Payment Bond
When do you purchase bid bond?
Bid Bond is issued to bid goods receiving company for guarrantee of goods delivery, and confirmation of prices for the particular project.
What term is there for a difference between Bid and Ask pricing measured in pips?
Measured in pips, spread is the term used for a difference between bid and ask pricing. This is the cost of an order placement for a trader.
Explain the difference between bid and q12h?
hi there its the same, i.e. bid=q12h tid=q8h qid=q6h
Is bid Bond refundable and when?
The bid Bond is refundable to losers when the contract is awarded. It is a bank guarantee of a specified value issued by the guarantee to the seller such that he cannot withdraw his bid from the tendering process.
What is a payment bond and a Performance bond?
Performance bonds protect the obligee (obligee is the entity requiring the bond)Requiring a performance and payment bond will insure that the project will be completedIf the principal defaults in its performance set forth in the contract to the obligee and the contractor is unable to successfully perform the job, the surety assumes the contractor's responsibilities and ensures that the project is completed. Below are the four types of contract bonds that may be required1. Bid Bond which guarantees that the bidder on a contract will pierce into the contract and equip the mandatory payment along with performance bonds. 2. Payment Bond which guarantees payment from the contractor of money to persons who furnish labor, materials equipment and also supplies for use in the performance of the contract. 3. Performance Bond which warranties that the contractor will hold out the contract in pact with its terms. 4. Ancillary Bonds which are auxiliary as well as crucial to the performance of the contract. Source http://www.integritybonds.com
What is the difference between bid and tender?
A bid is making a financial offer for something or the amount of money that you will pay for something. A tender is offering a service at a specific price.
How do you record interest and payment on a bond issued at a premium?
The bond price exceeds the par price when issued at a premium and declines to the par value as it gets closer to maturity. Yes. If the bid spread is significant, and or if the financial situation of the contractor changes beyond the comfort level of the surety between the bid and award, or if the final bond is contingent..
Difference between the bid price and offer price?
The ''bid price'' is the price at which an investor can sell the securities he/she holds. The ''offer price is the price at which an investor can buy securities.
