To be sure that the party who are bidding (competing) for the contract are willing to adhere to the terms of the offer, third party demands a bid bond guarantee in the amount 1%-5% of the value of the contract. In this case, bid bond guarantee is issued to the third party on behalf on the applicant (bidet). The validity of this bond is usually from 3 -6months and it can be extended if the party request for extension.