- A bid bond is part of the documentation required when one is submitting a bid.
- It is subject to full or partial forfeiture if the winning bidder fails to execute the contract
SME’s participating in government tenders can now get real-time unsecured bid bonds of up to Sh10 million via a web-based platform launched by HF Group.
Dubbed 'HF Whizz Bid Bonds' the online-based solution is designed to empower SMEs with 24/7 access and seamless experience when applying for bid bonds, thereby increasing their chances of winning tenders.
A bid bond is part of the documentation required when one is submitting a bid.
HF will guarantee the project owner or contracting authority that in the event the bidder wins the tender, they will meet the obligations of the contract under the terms at which they had bid.
A bid bond is subject to full or partial forfeiture if the winning bidder fails to execute the contract or provide the required performance bonds.
According to HF Group CEO Robert Kibaara, bidders usually make their bid bond applications at the last minute; a peculiar behavior observed in the Kenyan market.
''Most bidders will only apply for a bid bond after putting together all the other required documentation, while a number of bidders will get to know about tenders at the eleventh hour,” Kibaara said.
HF Whizz bid bonds give customers pre-approved unsecured limits of up to Sh10 million and the ability to self–serve. It eliminates the hassle of the offer letter process.
Traditionally bid bond issuance in most of the FSI players is a time-consuming activity that requires brick and mortar engagement. This negatively affects the bidder’s response time.
The HF Whizz bid bonds eliminate the time limitations of physical interface with the bank and put the control in the hands of the customer with its self-serve capability – with end-to-end digital registration, application and instant approval that is accessible 24/7.
HF Whizz bid bond is the latest addition to HF’s digital banking offering. The Bank recently launched HF Whizz Money Transfer and HF Whizz Digital Collections.
“The SME sector is a key area of focus for the bank, and we shall continue to roll out comprehensive solutions for the players in this space,” Kibaara said.