Bond Product
Bid Bond
Bid security required when submitting a proposal to a Philippine government agency or private project owner.
Overview
A bid bond, also called bid security, is a surety undertaking that supports your bid. It assures the obligee that if your bid is selected, you will enter into the contract and post the required performance security.
Under Philippine government procurement practice, bid security is commonly set at a percentage of the approved budget for the contract, with surety bonds typically accepted at a higher percentage than cash or bank instruments. The bidding documents always govern the exact form and amount.
Purpose
- Protects the obligee against a winning bidder who withdraws or refuses to sign the contract.
- Screens out non-serious bidders and supports orderly award of contracts.
- Lets bidders preserve working capital compared with posting cash or a manager's check.
Who needs this bond
- Contractors bidding on infrastructure and building works
- Suppliers bidding on goods, equipment, and materials
- Consultants and professional service firms joining public bids
- Joint ventures submitting a single consolidated bid
Typical requirements
- Accomplished bond application with obligee and contract details
- SEC or DTI registration, Articles of Incorporation or business permit
- BIR Certificate of Registration and latest tax return
- Audited financial statements for the last two to three years
- Valid government IDs of signatories and board or partnership authority
- Copy of the obligee's bond requirement, invitation to bid, or contract
- PCAB license for construction bids, where applicable
Final requirements depend on the obligee and the issuing insurance company. See the full requirements guide.
Application process
Step 1
Submit the application
Open an application in your SuretyPH portal and enter the obligee, contract, and bond details.
Step 2
Upload requirements
Follow the guided checklist and upload each document securely to your application file.
Step 3
Pre-assessment
We review the file for completeness and refer it to a participating licensed insurance company.
Step 4
Quotation
The insurer evaluates the submission and issues a quotation covering premium, fees, and any collateral requirement.
Step 5
Payment and issuance
Once the quotation is accepted and the premium settled, the insurer issues the bond for release or delivery.
Frequently asked questions
How long is a bid bond valid?
Validity follows the bid validity period stated in the bidding documents, commonly 120 days from bid opening, and may need extension if the award is delayed.
Is the premium refundable if we lose the bid?
Premiums are generally earned once the bond is issued. Refund or cancellation treatment is determined by the issuing insurance company.
Can a bid bond be issued the same day?
Turnaround depends on document completeness and insurer evaluation. Complete files move fastest, but no timeline is guaranteed.
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SuretyPH is a digital information and lead-generation platform owned and operated by McMatthise Global Group Corporation. It does not independently underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, premiums, approval, and issuance remain the responsibility of the relevant duly licensed insurance company.