Bid Bonds and Guarantee needs simplified

Welcome to PSL CAPITAL LIMITED, (a subsidiary firm of AVLC GROUP) where we are committed to providing comprehensive bank guarantees and Bid Bonds solutions tailored to the unique needs of businesses in Kenya and Eastern Africa.

Please download and fill the form below to get your Bid Bond processing easy and fast.

PSL Bid Bond Request form (2022)

For more information or assistance, contact us:

Email: info@avlcapital.com

Phone: 020 230 4180

What is a Bid Bond in Kenya?

It is a type of surety that serves as a guarantee from a bidder to a project owner (usually a government agency or private entity) that the bidder will fulfill the terms of a contract awarded. In Kenya, bid bonds hold a significant place in the procurement process, helping to safeguard the interests of government entities and private companies involved.

Bid Bonds requirements.

Our team at PSL CAPITAL LIMITED understands that meeting the specific requirements for bid bonds is essential for a successful bidding process. From documentation to financial eligibility, we are here to assist you every step of the way.

Bid Bonds rates.

At PSL CAPITAL LIMITED, we recognize that competitive rates are essential for your project’s financial planning. With transparent pricing, you can confidently calculate the financial implications of the bid bond as you prepare your bid.

Bid Bond financing.

Understanding that bid bonds often require upfront financial commitment, we offer bid bond financing options. This ensures that financial constraints don’t hinder your ability to participate in competitive tenders in Kenya and Eastern Africa.

Bid Bond percentage

Bid bond amounts are typically a percentage of the bid value, often ranging from 1% to 2%. This percentage showcases the bidder’s commitment to the project’s successful completion. The higher the percentage, the stronger the commitment.

Bid Bond Example

Consider this scenario: A construction company is bidding for a government infrastructure project and to demonstrate their commitment, they provide a bid bond that acts as security and if they fail to secure the project, the bond is released. However, if they win the bid and don’t fulfill their obligations, the bond is used to compensate the project owner for losses incurred.

Bid Bond in a tender.

In the context of a tender, a bid bond serves as a guarantee that a bidder will proceed with the contract if awarded and it provides an assurance to the tendering authority that the bidder is credible and financially sound hence this security contributes to a fair and trustworthy tendering process.

Tender security vs Bid Bond.

While both tender security and bid bonds aim to ensure bidder commitment, they have key differences. Tender security involves a monetary guarantee alongside the bid, while a bid bond on the other hand, acts as a financial commitment and is a separate instrument from the bid.

Choose PSL CAPITAL LIMITED for expert guidance in bid bonds, performance bonds, and tendering excellence.