About (GNBBA)
The purpose of Ghana National Bid Bond Authority
Bid/performance Bond Insurance Act, 2021 (Act 1061)
National Bid bond Act, 2021 (Act 1061) has repealed the Insurance Act, 2006 (724), and now serves as the legal instrument for the regulation and supervision of the insurance market. This act has given provision for rapid development in Ghana procurement.
A National bid bond guarantee compensation to the bond owner if the bidder fails to begin a project. National Bid bonds are often used for construction of jobs, commercial supply or other projects with similar bid-based selection processes.
The function of the bid bond is to provide a guarantee to the project owner that the bidder will complete the work if selected. The existence of a bid bond gives the owner assurance that the bidder has the financial means to accept the job for the price quoted in the bid.
Ghana National Bid Bond Authority was instituted to stand against procurement and construction corruption in Ghana.
The anti-corruption legislation in the republic of Ghana with the United Nations convention against corruption and the African union convention on preventing and combating corruption. The GNBBA stand to make sure that every governmental approved and awarded contract is perfectly completed without being politicalized. Centre for Democracy and Governance defines corruption as ‘the abuse of public office for private gain’. it encompasses unilateral abuses by Government officials such as embezzlement and nepotism as well as abuses that link public and private actors such as bribery, extortion, influence peddling and fraud. Corruption arises in both political and bureaucratic offices and may be petty or grand, organized or not organized. Transparency International also defines corruption as ‘a behavior on the part of officials in the public sector, whether politicians or civil servants, in which they improperly and unlawfully enrich themselves or those close to them, by the misuse of public power entrusted to them’. These include embezzlement of funds such as bribery, extortion or influence peddling. Ghana National Bid Bond Authority has been empowered to ring to book any person or persons in any plan to confiscate public fund map-out for procurement in Ghana. Any contractee that did not comply by the contract agreement between the contractee and the contractor on payment plans, the contractee account will be frozen prosecuted, corruption can be prosecuted only when evidence of corrupt conduct is available.
Vision
To build a trusted and quality relationship between Ghana and the global market.
To protect private and public sector projects in Ghana.
OUR KEY
A bid bond is a legal agreement that ensures contractors fulfill their stated obligations on a project.
This form of assurance provides both financial and legal recourse to the owner of the project and the contractor.
Bid bonds are usually submitted in conjunction with the project’s contract.
Bid bonds are backed by surety guaranteeing the payments will be made if the contractor fails to uphold their end of the bargain.
The other main types of construction bonds are performance and payment bonds.
Bid bonds ensure that contractors can comply with bid contracts and will fulfill their job responsibilities at agreed prices, the bonds that serve as a means of legal and financial protection to the client. Without bid bonds, the government of Ghana would have no way of guaranteeing that the bidder they select for a project would be able to complete the job properly. This is to make sure that there will not be any abandoned project again in Ghana both to the public and private sectors.
