This type of policy covers the employer of a project if the bidder of the project

1. If the bidder withdraws his Bid during the period of bid validity specified in the bidder in form of bid.
2. If the bidder, having been notified of the acceptance of his bid by his employer, during the period of bid validity.

• (a)    Fails or refuse to execute the form or agreement in accordance with the instructions to tenderers, if required.
• (b)    Fails or refuse to furnish the performance security, in accordance with the instructions to tenderers.