Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

Search the Dictionary of Terms

Search Results: 1-1 of 1 result for “Bid Deposit”

  • Bid Deposit

    A sum of money, a check, or other acceptable cash alternative, such as an irrevocable letter of credit or the contractor’s pledge against owned property or against personal assets deposited with the buyer by a bidder, as a guarantee that the bidder will enter into a contract if awarded. May also be in the form of a bond issued by a surety and deposited with a government agency guaranteeing the bidder will not withdraw the bid for a specified period of time, will furnish bonds as required, and will accept a contract if awarded, or forfeit the deposit.