These instruments appear to be causing consternation and difficulties for some provders. Indeed more than one provder has attempted to challenge the inclusion of the requirement for a Performance Bond in the tendering process.Providers frequently query:
what these instruments are;
- their validity;
- the legality of the demands by purchasers that such a Bond should be in place;
- costs involved
- how they work.
The attached document sets out what these Bonds are, why they are used, what they mean for providers and recommended actions for providers tendering for public sector contracts.