Tender Bond
As Gaeilge: Banna Tairisceana
Also known as: Bid Bond
Last reviewed April 2026
A bond submitted with a bid that the authority can call if the bidder withdraws or refuses to sign the contract after award.
A tender (or bid) bond is an undertaking by a bank or surety to pay the contracting authority a fixed sum (typically 1 to 2% of the tender value) if the bidder withdraws its tender during the validity period or fails to enter into the contract after award. Less common on Irish standard public contracts, but appears on large works tenders, utilities procurement and on contracts where the authority wants to deter speculative bidding. Should not be confused with the performance bond, which secures contract delivery.
Related terms
Performance Bond
A guarantee from a surety (bank or insurer) that the contractor will complete the works — typically 12.5% of the contract sum on Irish public works.
Tender Validity Period
The period after submission during which a bidder is bound by its priced offer, commonly 90 to 180 days on Irish tenders.
Parent Company Guarantee
A guarantee from the parent of a bidding company that it will stand behind the contract, often required where the bidder is a thinly capitalised subsidiary.