Surety bond for public tenders

What are surety bonds for public tenders

A surety bond for public tenders is the guarantee that every economic operator must provide when taking part in an award procedure launched by the Italian Public Administration. Governed by Legislative Decree 36/2023 (the new Italian Public Contracts Code), it protects the contracting authority against the risk of default by the awarded company and accompanies the entire tender cycle, from the offer to the closing of works.

Two main types are used. The bid bond (art. 106 of the Code) guarantees the seriousness of the offer at the time of participation: usually equal to 2% of the base auction amount, it is released to the non-winning bidder immediately after the award. The performance bond (art. 117) covers the proper execution of the contract: its amount is equal to 10% of the awarded value, with possible increases if the bid discount exceeds 10% or 20%.

Specific guarantees also exist for particular stages of the contract: the advance payment bond, required to receive the 20% advance provided for by art. 125, and the retention bond for the release of the final payment tranche.

To be accepted by any contracting authority — from small municipalities to entities such as ANAS, RFI, CONSIP — the bond must be issued by an authorised institution, comply with the ministerial standard template and include clauses such as waiver of the right of prior recourse against the principal debtor and operation at first demand within 15 days. For over 30 years we have been issuing surety bonds compliant with every public tender, with digital signature and electronic delivery in 24-48 hours.