There are 2 types of Bonds available:
When you spot a tender advertisement asking for a Bid Bond, this is it. A Tender/Bid Bond is a guarantee issued by us on your behalf to aid the in the bidding for a contract/supplies. It assures the owner of the tender that the supplier will deliver as per the terms stipulated in the contract.
Bid Bonds can be processed in just 2 hours and can cost from as low as KES 2,000.
A bid bond is a written guarantee from a third-party guarantor (in this case us as Credit Bank) submitted to a Principal by a Contractor (bidder, which is you the supplier) which ensures that on winning of a bid, the contractor will proceed with the contract and will replace the bid bond with a Performance Bond otherwise, the guarantor (Credit Bank) will pay the principal the difference between the contractor’s bid and the next highest bidder.
A bid bond is not an insurance, and (if cashed by the principal) the payment amount is recovered by the guarantor from the contractor
Once you land that deal, you may be required to submit a performance bond. A performance bond provides assurance that the project/job awarded will be done satisfactorily as per the terms of the contract engaged.
The guaranteed amount is usually 10% of the contract value. The validity is usually until the full completion of the contract and may include a further claim period
Also known as a contract bond. It is issued by us to guarantee satisfactory completion of a project by a contractor. It ensures payment of a sum (not exceeding a stated maximum) of money in case the contractor/supplier fails in the full performance of the contract.
At Credit Bank, we issue a variety of bonds to suit your needs as a business. Other forms of bonds we issue include: