Introduction

You submitted your bid. The evaluation committee liked your proposal. You are about to be awarded the contract — but then you are asked for a performance bond, and you realise you do not understand what that means or how to get one.

This scenario plays out repeatedly in Zambia. Bonds are a standard requirement in public procurement, yet many bidders treat them as an afterthought. The result? Disqualification, delayed contract signing, or worse — financial penalties that cripple a small business.

This article explains the two bonds you will encounter most often in Zambian tenders: the bid bond and the performance bond. You will learn what they are, how much they cost, where to get them, and the costly mistakes to avoid.