Common use of Bid Guarantee Clause in Contracts

Bid Guarantee. All bids must be accompanied by a negotiable bid guarantee, in a form acceptable to GDPM, which shall not be less than five percent (5%) of the amount of the bid. The bid guarantee may be a certified check, bank draft, U.S. Government Bonds at par value, or a bid bond secured by a surety company acceptable to the GDPM and authorized to do business in the State of Ohio. Certified checks and bank drafts must be made payable to the order of GDPM. The bid guarantee shall insure the execution of the contract and the furnishing of a method of assurance of completion by the successful bidder. Failure to submit a bid guarantee with the bid may result in the rejection of the bid. Bid guarantees submitted by unsuccessful bidders will be returned as soon as practicable after bid opening.