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Bid security, retention, and LDs: numbers that change your cash plan

March 25, 2026 · 109 views

finance · contracts · risk

Cash-neutral bids are rare once you add performance security, retention, and advance repayment guarantees.

Bid bonds

Note validity beyond award, currency, and whether an unconditional on-demand wording is acceptable to your bank.

Retention and LD caps

Check cumulative caps on liquidated damages and whether they interact with termination for default.

Model monthly cash flow with these deductions before you lock your price.

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