Tender security is a tender-specific requirement. PPRA tender examples show that procuring entities can specify the amount, acceptable form and validity period, and PPRA maintains a list of insurance companies authorised to issue bid securities.
Check the tender before you request the instrument
Do not ask a bank or insurer for “the usual bid bond.” Give them the current tender requirement. The amount, beneficiary, validity, wording and accepted issuer type should match what the procurement document says.
01
Amount.
Use the exact amount or formula stated in the current tender.
Use the exact amount or formula stated in the current tender.
02
Form and issuer.
Confirm whether the tender accepts a bank guarantee, approved insurance guarantee or another stated instrument.
Confirm whether the tender accepts a bank guarantee, approved insurance guarantee or another stated instrument.
03
Beneficiary and wording.
Names and guarantee language should follow the tender's own form or instructions.
Names and guarantee language should follow the tender's own form or instructions.
04
Validity.
Check the required security-validity period separately from the tender-validity period.
Check the required security-validity period separately from the tender-validity period.
Official references
PPRA authorised insurance providers · PPRA Standard Tender Documents
Why this is a preliminary-evaluation risk
PPRA review material cites preliminary evaluation rules that check whether tender security is in the required form, amount and validity period. If a security is mandatory, a mismatch can prevent the bid from advancing.
Do not reuse an old guarantee template without checking it line by line.The tender you are bidding may require different validity, wording or an entirely different instrument.