Tender Guarantee

A written document issued by Bank of China (Malaysia) Berhad at the request of the Tenderee for bids of construction and procurement of project, committing that the Tenderer will not withdraw or amend its bid during the validity period of the bid, and will sign the contract or submit performance guarantee within the preset time once winning the bid. 

Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, Bank of China (Malaysia) Berhad involves in the transaction and acts as a Guarantor to promote smooth transaction by providing guarantee for the parties. 

Reduce the financial pressure. As an alternative to cash margin, it can reduce tied up fund of the Tenderer. 

Indemnify the damaged party and penalize the defaulting party in case of breach of contract to avoid and reduce contract breaching activities, thus saving trouble and expenses arising from litigation or arbitration. 

Contractors involved in contracted projects. 

Suppliers involved in material procurement projects. 

The enterprise is maintaining current account with our bank and having granted the facilities by the Bank of China (Malaysia) Berhad. 

Product Disclosure Sheet - Bank Guarantee/ Standby Letter of Credit - Version No 2023-09

The customer should provide the following documents:

a. Letter of Application for Banker’s Guarantee

b. General Letter of Indemnity For Banker’s Guarantee