Bidligence
Get started

Answer · Preparing a bid

How can a small contractor get a bid security?

First, check what the tender accepts. Some accept a Bid-Securing Declaration, which needs no bank. Others accept a guarantee from a bank, insurer or surety, a letter of credit or a certified check. Ask early, because issuers need time and may ask for cash or collateral.

This page uses the World Bank's two-envelope works document (September 2025 edition, ITB 19). Your tender's own documents always decide.

Create your workspace Reviewed 04/11/26

What are your options?

The Bid Data Sheet says whether the tender wants a security or a declaration. It also states the amount and currency. The notes in the last column are general, so ask each issuer.

FormWho provides itWhat to expect
Bid-Securing DeclarationYou sign itNo payment, but a breach can suspend you from that employer's tenders for a set time
Bank guaranteeA bankIt may ask for a cash margin or other security
Bond or guarantee from an insurer or suretyA non-bank financial institutionIt reviews your credit and your work history
Irrevocable letter of creditA bankIt may ask for security, as with a guarantee
Cashier's or certified checkA bankYour cash stays tied up until it is returned

What if you have little collateral?

Try these steps in order. Not all of them exist in every country.

  1. 1Check if the tender accepts a declaration. Ask the buyer in writing if it is unclear.
  2. 2Ask insurers and surety companies as well as banks, if the tender allows them.
  3. 3Ask your own bank what it would need, and how long it would take.
  4. 4Look for a public scheme for small firms.
  5. 5Consider a joint venture with a stronger partner.

Examples of public schemes

These are examples only, so confirm the current rules.

  • United States: the SBA guarantees bid, payment and performance bonds from certain sureties. It charges no fee on a bid bond. The contract limit is US$9 million, or US$14 million for federal work.
  • India: Startup India lists Rule 170(i) of the General Financial Rules, which relaxes earnest money for recognised startups. It binds central government buyers, and states may differ.

How can you lose it?

The World Bank document lists these grounds for forfeiting a bid security.

  • You withdraw your bid before the bid validity ends.
  • You win, but you do not sign the contract.
  • You win, but you do not provide the performance security.

What mistakes get a bid rejected?

A bid without a substantially responsive security or declaration is rejected. So check these details before you submit. The validity calculator works out the dates.

  • The amount and the currency match the data sheet.
  • The validity lasts as long as the tender requires.
  • The issuer is one the tender accepts.
  • The wording follows the tender's form.
  • It names the joint venture, or all its future members, if you bid as one.

How can Bidligence help?

Bidligence cannot provide a bid security. It records what the tender asks for when it reads the pack, and the requirement then appears in your checks. You still get the original document from the issuer.

Questions

How long does it take to get one?
It depends on the issuer and on how well it knows you. Ask as soon as you decide to bid, and do not leave it to the last week.
What is the difference between a bid bond and a bank guarantee?
They do the same job, but the issuer differs. See what a bid bond is.
Is a Bid-Securing Declaration free of risk?
No. You pay nothing up front. However, withdrawing during validity or failing to sign as the winner can suspend you from that employer's tenders.

Sources

Rules and portals change. Check the tender’s own documents and the official source before you rely on any of this.

Keep reading

Answer · Tender terms explainedBid bondA bid bond is a bid security from an insurer or surety. A bank guarantee comes from a bank. Both protect the employer. The tender decides which it accepts.Guide · Securities and datesBid security and validityWhat a bid security is, the forms it can take, how long it must stay valid, how a bid-securing declaration differs, and the errors that get bids rejected.Answer · Tender terms explainedPerformance securityA performance security protects the employer if the contractor breaches the contract. World Bank works tenders require it within 28 days of acceptance.Answer · Preparing a bidAsking a tender questionWrite to the buyer before the clarification deadline, and expect every bidder to see the answer. See the rules, what to ask and a simple way to write it.

See what a live tender asks for

Create a free workspace and analyse a live tender with your welcome credits. Then check its bid security terms against the data sheet.

Create your workspaceSee pricing

Cookies on Bidligence

We use strictly necessary cookies to keep you signed in, protect your account and take payments. With your permission we also remember interface preferences on this device (theme, language and the 3D view’s look) and set our own analytics cookie, to recognise a returning visitor and see which of our pages and campaigns bring people to Bidligence. With your permission, our advertising partners (Google) may also set marketing cookies on our public website to measure our ads and show them to people who have visited Bidligence. Without the analytics cookie we still count visits, one day at a time. Cookie Policy