QUOTE(2387581 @ Dec 8 2016, 03:40 PM)
Hi iwubpreve, can you explain to me regarding the deposits/bonds involved in a tender process?
- Tender deposit
- Tender documentation fee
- Tender bond
- Performance bond
What are the differences? For simplicity's sake, say we have Contractor A (successful) and Contractor B (failed) to submit for tender.
Who will submit which of the above to who (client, architect or QS?) , at what stage respectively?
Which of these payments do we have to return to each contractor respectively, and when?
Over the course of the construction, does any of these payments get cashed?
tender deposit is earnest money. meaning u commit to submit ur tender offer. if u fail to submit tender offer within deadline or according to the instruction, then they will forfeit ur tender deposit- Tender deposit
- Tender documentation fee
- Tender bond
- Performance bond
What are the differences? For simplicity's sake, say we have Contractor A (successful) and Contractor B (failed) to submit for tender.
Who will submit which of the above to who (client, architect or QS?) , at what stage respectively?
Which of these payments do we have to return to each contractor respectively, and when?
Over the course of the construction, does any of these payments get cashed?
documentation fee just reimburse consultant those expenses they give u drawing and documents cost nia.
tender bond is the bond that the client will claim if after award to u then u FFK
performance bond is during construction, if contractor incurred damage to client, the client can call the bond to reimburse the damage he suffer. eg. contractor complete the job with defect but unable to fix it. then client will engage 3rd party and reimburse the money through bond. generally bond under this 2 categories namely bond in demand or conditional bond. bond in demand mean the client can call the bond as he like even contractor make no fault. conditional bond is only certain criteria met then client can call the bond. mostly used is bond in demand.
Dec 9 2016, 08:28 AM

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