The GNBBA was established by the procurement and development Act, 2006 (Act 724), which replaced Insurance Law, 1989 (P.N.D.C.L. 227). Its objective is to ensure effective administration, supervision, regulation, monitoring and control of the business development, to protect and assure the security of the contractee fund and effective use of public fund.

The Ghana National Bid Bond Authority is governed by Agency Act 2006, ACT 724. This Act complies significantly with the International Association of bid bond i7. Insurance Supervisors (IAIS) Core Principles and gives better regulatory powers to the procurement contracts. (See Act and Regulations for more information on the Act).

The Act among other things prohibits composite procurement companies. This is to make sure that every contractor completes his project on or before the given time.

Ghana National Bid Bond Authority works in accordance with the law and to insure that every contractor must make bid Bond deposits and the total money deposited by the contractor will be refunded with an additional 2.5% interest rate of the total amount deposited by the contractor. The 2.5% interest rate is calculated monthly and must be refunded back to the contractor as the completion of the 70% of the project.