What is bid security and under what circumstances would a contracting authority seek bid security?
Bid security can be required from a bidder to protect the Crown against loss should the successful bidder fail to enter into a contract. The decision to obtain bid security should take into account the extent of bidder pre-qualification possible, the type of work and custom of the trade, the likelihood that bidders may attempt to withdraw their bids, and the consequences of the failure or inability of the successful bidder to enter into a contract. For competitive solicitations, the decision to obtain bid security must be taken prior to issuing the bid solicitation.
