Performance security and the contract stage: after you win
Winning is the start of the real work, not the end. The contract stage has its own steps and its own money at stake. Knowing them keeps a win from becoming a headache.
1. Notification of Award (NOA)
The buyer issues a Notification of Award confirming you're selected. It sets out what you must do next and by when — read the timelines carefully.
2. Performance security
Before or at contract signing, you submit a performance security — a guarantee that you'll deliver, in the amount, form and validity the contract requires. It replaces your tender security, which is then released. Arrange it promptly; delay here can jeopardise the award.
3. Sign the contract
You and the buyer execute the contract. Everything you priced and promised in the bid now becomes a binding obligation — which is exactly why bidding disciplined and compliant matters upstream.
4. Deliver — and manage the obligations
Meet the specifications, timelines and reporting the contract sets. Performance security (and often retention) stays in place through delivery and any defect-liability period, and is released when your obligations are met.
How Tenderytics helps
Tenderytics helps you win the right contracts — ones you can deliver profitably — and keeps each bid and its key dates in one workspace through award and delivery. The exact performance-security amount, form and obligations always come from your specific contract; follow them precisely.
Frequently asked
What is the difference between tender security and performance security?
Tender security (bid bond) backs your bid during evaluation; performance security backs your delivery after you win. The performance security replaces the tender security once you sign.
When is performance security released?
Typically after you've met your contract obligations, often including a defect-liability period — as the specific contract defines. Keep it valid until then.