- Primary Security

The primary security is a financial amount or a guarantee document provided by the competitor as part of the tender offer. The purpose of this security is to prove the seriousness of the competitor's participation and commitment to the tender conditions. Primary securities are considered an essential part of the tenders process and help reduce the likelihood of participants withdrawing after submitting their offers.

The primary security is usually a percentage of the total project value (typically between 1% to 5%) and is submitted in the form of a bank cheque, a bank guarantee letter, or any other format specified by the announcing body. If the applicant does not adhere to the tender conditions, the announcing body may confiscate the security.

The function of the primary security is to protect the announcing body from risks that may arise due to the submission of unserious offers or the withdrawal of applicants after the award of the tender. If the competitor wins the tender and signs the contract and provides the final security, the primary security is returned to them.

In the case of not winning the bid, the primary security is fully refunded. Therefore, participants must ensure the submission of security on time and in the required manner to avoid the exclusion of their offer.