What are the costs of these policies?
The insurance premium for a Bid Bond varies according to the credit solvency of your society and requested guarantee amount. The insurance premium is normally (provided all criterion of solvency are met) inversely proportional to the insured sum. This insurance premium may also be adjusted depending on the history of the Insured Party in the Insurance society. The minimum insurance premium is 300 RON or 50 GBP.
Can the Contractor deny the Bid Bond?
As per Article 86, paragraph (4), line a) : ‘The contractor does not have the right
to dictate or prohibit the use of an instrument of guarantee issued by a banking society or insurance society, specified deliberately in the tender documentation’.
Does the Bid Bond have the same value as a Bank Letter of Guarantee?
Yes, the Bid Bond or any of the other two methods of presenting the required guarantee by the Contractor have the same value. Furthermore, according to Article 86, paragraph (4), line c): ‘The contractor does not have the right
to dictate or prohibit the use of guarantee letters in any of the forms mentioned in paragraph (3) lines a)-b) or to award, during the evaluation process, additional points to one of the methods of guarantee’.
How long does the process of emitting the guarantee take?
For the firms that have not been previously analysed regarding solvency in the insurance society, the analysis period can take up to 3-5 working days. Once the analysis has been completed, any other request can be completed in 24 to 48 hours, depending on the insurance society where the request has been made.
How many policies can I take on?
There is no limit for the number of insurance policies that one can establish. There is always the option of choosing another insurance society if problems arise.
What happens if the Contractor requests a term extension for the existing offers?
The Insurance policies can be extended at the request of the Contractor for a period of up to 180 days. The extension can also be done in more steps, as long as the maximum term is respected.
Can we extend a Bank Letter of Guarantee through the Bid Bond?
In exceptional situations, this may be possible, provided the insured party must be an existing client and signs a statutory declaration that it has not contested the on-going procedure.