Chapter 3
Government Procurement & Bidding
Where bid security and performance security fit in Philippine public bidding, and how to read bond requirements.
Topics in this chapter
3.01
Where Do Surety Bonds Fit in Government Procurement?Government procurement may involve security requirements at different stages of the bidding and contract process. A surety bond is not the requirement itself; it may be one permitted form of security where the applicable procurement rules and bidding documents allow it.
3.02
What Is Bid Security and Why Is It Required?Bid Security is a procurement security requirement connected with a bidder's commitment during the bidding process. A Bid Bond is only one possible form of Bid Security where the applicable rules and bidding documents permit it.
3.03
When Is a Surety Bond Used as Bid Security?A surety bond may be used as Bid Security only when the applicable procurement rules and the bidding documents permit that form. Applicants should verify the permitted forms before requesting or submitting a Bid Bond.
3.04
What Is Performance Security After Contract Award?Performance Security is a post-award procurement requirement connected with the successful bidder's contractual obligations. A Performance Bond is only one possible form of Performance Security where the rules and bidding documents allow it.
3.05
How Do You Read Bond Requirements in Bidding Documents?Reading bond requirements in bidding documents starts with identifying the exact security requirement, then confirming whether a surety bond is an accepted form and what conditions apply. Do not rely on generic percentages, deadlines or assumptions.
3.06
What Should You Check Before Bid Submission Day?Before bid submission day, applicants should verify the bidding documents, current procurement rules, security form, names, amount, validity, wording, signatures, issuer requirements and submission instructions. The checklist supports preparation but does not guarantee bid responsiveness or eligibility.
3.07
What Happens to Bond Requirements After a Bid Is Awarded?After a bid is awarded, the successful bidder may move from bid-stage security to post-award security and contract requirements. A Bid Bond does not automatically become a Performance Bond.
3.08
Common Surety Bond Issues in Government BiddingCommon surety bond issues in government bidding often come from mismatches between the bidding documents and the submitted security. Examples include incorrect names, wrong security type, insufficient validity, wording differences, issuer issues and late preparation.
Important Notice
Inquiries and supporting documents submitted through SuretyPH may be referred to the applicable participating insurer for evaluation. Submission does not constitute approval or issuance of a surety bond. Applications are subject to the insurer's requirements, evaluation, underwriting, terms, conditions, and approval.
SuretyPH is a digital platform for surety bond information, inquiries, requirements and request tracking. It does not underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, approval, pricing and issuance are undertaken by the applicable licensed insurance company.