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Estimating & Biddingaka: bid security

Bid Guarantee

In Plain English

Money or a bond a contractor puts up to prove they are serious about their bid price.

Definition

A bid guarantee is financial security submitted with a bid to ensure the bidder will honor the bid if selected. It may take the form of a bid bond, certified check, or cashier's check. The guarantee is forfeited if the winning bidder refuses to execute the contract.

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