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Bid Preparation

Plain-language definitions of every Bid Preparation term that shows up in government tender work.


Bid Preparation

Advance Payment Guarantee

A bank guarantee securing a buyer's advance payment to a contractor, ensuring the funds are repaid if the contractor fails to deliver the goods or works for which they were advanced.

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Bid Preparation

Bank Guarantee

An unconditional written commitment by a bank to pay a specified sum to a beneficiary on demand, used in procurement to back bid securities, performance obligations, advance payments, and retention releases.

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Bid Preparation

Bid Clarification

A formal request from a contracting authority to a bidder seeking explanation of an ambiguous element in a submitted bid, without allowing the bidder to change the substance of its offer.

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Bid PreparationBER

Bid Evaluation Report (BER)

The formal document prepared by an evaluation committee that records the assessment of all submitted bids, the responsiveness determination, the comparative evaluation, and the recommendation for contract award.

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Bid Preparation

Bid Extension

A formal postponement of the bid submission deadline issued by a contracting authority, which automatically extends each bidder's bid validity period by the same number of days.

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Bid Preparation

Bid Modification

A formal amendment to a submitted bid delivered before the submission deadline, allowing a bidder to correct errors or update pricing and documents without withdrawing and resubmitting.

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Bid Preparation

Bid Opening

The formal procedure at which sealed bids are opened at the submission deadline, bid details are read aloud, and representatives of bidders and observers may witness the process to ensure transparency.

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Bid Preparation

Bid Security / Bid Bond

A financial guarantee a bidder lodges with its offer on major contracts that the buyer can call if the bidder withdraws during validity or wins but refuses to sign, deterring non-serious bids.

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Bid Preparation

Bid Validity Period

The period after the submission deadline during which a bidder is legally bound to honour its offer, typically 90 to 120 days for goods and works, giving the buyer time to evaluate and award without risk of price withdrawal.

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Bid Preparation

Bid Withdrawal

A bidder's formal request to cancel a submitted bid before the submission deadline, permitted without penalty in most procurement frameworks when the withdrawal notice arrives in time.

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Bid Preparation

Conflict of Interest Declaration

A mandatory disclosure in which a bidder confirms it has no relationship, financial interest, or prior role that would compromise its independence or give it an unfair advantage in the procurement process.

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Bid Preparation

Declaration of Eligibility

A signed statement required of every bidder confirming it meets the nationality, debarment, and legal standing criteria for a specific procurement process under the applicable procurement rules.

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Bid Preparation

Equipment Requirements

Qualification criteria specifying the types, quantities, capacities, and availability of plant, machinery, or specialised equipment a contractor must own or have committed access to in order to qualify for a works contract.

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Bid Preparation

Experience Requirement

A qualification criterion specifying the number, type, size, and recency of similar contracts a bidder must have completed to demonstrate it can perform the work being tendered.

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Bid Preparation

Financial Capacity Requirement

A qualification criterion requiring a bidder to demonstrate sufficient annual turnover, liquid assets, or access to credit to finance the contract without cash-flow constraints during performance.

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Bid Preparation

Key Personnel Requirements

Qualification and bid criteria specifying the minimum qualifications, experience, and roles of named individuals a bidder must commit to assigning to a contract if awarded.

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Bid Preparation

Late Bid

A bid received by the contracting authority after the stated submission deadline, which must be rejected and returned unopened under virtually all international procurement rules.

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Bid PreparationLC

Letter of Credit (LC)

A bank's conditional payment undertaking that guarantees a seller receives payment once they present compliant shipping and trade documents, widely used in international goods contracts to manage payment risk across borders.

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Bid Preparation

Material Deviation

A departure from the bidding documents that limits the buyer's rights, reduces the bidder's obligations, or prevents fair comparison of bids, resulting in automatic disqualification of the submission.

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Bid Preparation

Minor Deviation

A departure from bidding document requirements that does not affect the scope or substance of a bid, and which a contracting authority may waive or correct without disadvantaging other bidders.

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Bid Preparation

Non-Responsive Bid

A bid that fails to meet one or more mandatory requirements of the bidding documents, disqualifying it from evaluation and award consideration before comparative assessment begins.

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Bid Preparation

Past Performance Record

Documented evidence of a supplier's track record on previously completed contracts, used to verify experience requirements and, in some frameworks, as a scored evaluation criterion reflecting delivery quality.

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Bid Preparation

Performance Guarantee

A bank-issued guarantee requiring a contractor to pay a fixed sum if they fail to complete a contract as agreed, protecting the buyer against non-performance after award.

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Bid Preparation

Performance Guarantee / Performance Bond

A financial guarantee the winning bidder provides after contract award, typically 5 to 10 percent of the contract value, that the buyer can call if the contractor fails to perform, protecting the employer against non-delivery.

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Bid Preparation

Power of Attorney (Bid Signing)

A notarised legal document authorising a named individual to sign bid documents, guarantees, and contract forms on behalf of a company, required by most international buyers to confirm that the signatory is authorised to bind the organisation.

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Bid Preparation

Power of Attorney (Bid Signing)

A legal instrument authorising a named individual to sign bid documents and make binding commitments on behalf of a company or joint venture in an international procurement process.

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Bid Preparation

Public Bid Opening

A bid opening procedure held in a venue accessible to all interested parties, including observers, civil society, and the general public, to promote transparency and deter corruption in public procurement.

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Bid Preparation

Qualification Criteria

The minimum standards of experience, financial strength, technical capacity, and legal standing that a bidder must meet to be eligible for contract award in an international procurement process.

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Bid Preparation

Responsive Bid

A bid that conforms in all essential respects to the requirements of the bidding documents, making it eligible for evaluation and award consideration under international procurement rules.

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Bid Preparation

Retention Money Guarantee

A bank guarantee allowing a contractor to receive withheld retention money early, while still protecting the buyer against defects discovered after practical completion of the works.

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Bid Preparation

Substantially Responsive Bid

A bid that meets all essential requirements of the bidding documents and is eligible for evaluation, even if it contains minor irregularities that the contracting authority may waive or correct.

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Bid Preparation

Surety Bond

A three-party contract in which a surety company guarantees to a project owner that a contractor will fulfil its obligations, serving as an alternative to a bank guarantee in some procurement contexts.

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