Power of Attorney (Bid Signing)

A power of attorney for bid signing is a formal legal instrument, usually notarised and sometimes apostilled, that authorises a named individual or office-holder to sign all documents submitted in connection with a specific tender on behalf of the bidding company, confirming to the buyer that the signatory has legal authority to bind the organisation.

What is Power of Attorney (Bid Signing)?

International buyers, including multilateral development banks, UN agencies, and government authorities, routinely require bidders to submit documentary proof that the person signing the bid, the bid security form, and any bid declarations holds the legal authority to commit the company. This proof takes the form of a power of attorney, a board resolution, or equivalent corporate authorisation document. In many jurisdictions, a power of attorney must be notarised by a notary public and, for cross-border use, apostilled under the Hague Convention so that foreign authorities can verify its authenticity without further legalisation.

The scope of the power of attorney matters as much as its existence. A document that authorises signing "tender documents" but does not mention bid securities, validity extensions, or contract execution may be rejected or may leave the company unable to respond to extension requests mid-evaluation without issuing a new instrument. Solicitation documents usually specify the exact form: some accept a certified copy of a general power of attorney covering commercial transactions; others require a specific power of attorney naming the tender reference. Failure to include the correct authorisation document is one of the most common pass-fail-evaluation failures in international procurement, disqualifying an otherwise complete bid. The bid-security-bid-bond signed by a person who lacks documented authority is typically treated as invalid.

Why Power of Attorney (Bid Signing) matters for bidders

Obtaining and correctly scoping a power of attorney can take two to three weeks if notarisation and apostille are required, which means leaving it until the week before submission is too late. The discipline is to read the administrative requirements section of every solicitation immediately on receipt, identify the exact form and scope required, and initiate the legal process early. Firms that bid regularly often maintain a standing general power of attorney for commercial transactions that their legal counsel certifies as sufficient under the specific solicitation requirements; this avoids re-issuing for every tender. When a bid is submitted through a consortium, each member typically needs its own authorisation document for its portion of the submission.

FAQ

Does a power of attorney need to be apostilled?

If the buyer is in a different country from the bidder and that country is a party to the Hague Apostille Convention, apostille is generally required. The solicitation documents specify the authentication standard; if they do not, confirm with the procurement officer before submission.

What happens if the signatory named in the power of attorney leaves the company mid-bid?

A new power of attorney naming the replacement signatory must be issued and submitted before any further documents, such as a validity extension acceptance, are signed. Acting on an expired or revoked power of attorney creates legal risk for both the company and the buyer.

Can a board resolution substitute for a power of attorney?

Some buyers accept a certified copy of a board resolution authorising named officers to sign procurement documents. The solicitation will specify which forms of authorisation are acceptable; check this carefully rather than substituting one form for another without confirmation.