Introduce a bid bond system

May 31, 2007
East Nippon Expressway Co., Ltd.

NEXCO EAST (Chiyoda-ku, Tokyo, Chairman: Shigejiro Yagi) will introduce a bid bond system with the aim of ensuring a higher quality competitive environment and smoother business progress.

Purpose of introduction

It is possible to secure an appropriate competitive environment by those who have true fulfillment ability, such as suppressing the entry of defective non-qualified contractors, which is a concern in the case of general competitive bidding, while suppressing contract withdrawal after a successful bid and in the process of fulfilling the contract. It can also be expected to be effective in reducing risks that hinder the progress of our business, such as bankruptcy and cancellation of contracts, so that we can achieve even smoother business progress.

System overview

In order to confirm the participation qualification of those who wish to participate in the bid in the construction ordering procedure by the general competitive bidding method, in addition to the performance evaluation and technical ability evaluation that we have done so far, we are newly We will introduce a bid bond system that incorporates a “management evaluation” by a third party.

Target construction

Of the construction that starts the bidding procedure after July 1, 2007,

  • Construction by the method of WTO general competitive bidding
  • Construction where it is recognized that business progress will be significantly hindered if the contract is declined or canceled
    (It will be clearly stated in the bid announcement and bid description for each order construction.)

Type of bid bond

Bid guarantee of financial institution or bid guarantee insurance of insurance company

How to submit a bid bond

Please submit it by enclosing it in the bid form at the time of bidding.

Bidding guarantee coverage

5/100 of the bid amount