Contractual Guarantees

Bid Bond

A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to provide guarantee, that the winning bidder will undertake the contract under the terms at which they bid.

The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds.

Advance return guarantee

The guarantee of return of the advance is requested to the contractor for the protection of the beneficiary, against the risk of failure to return the advance paid by him, in case the contractor doesn't comply with the obligations of justification/use of the advance.

Performance bond

The performance bond is requested to the contractor in case of improper compliance with the contractual obligations undertook by the insured through the basic agreement

Maintenance guarantee

The maintenance guarantee is a firm and irrevocable commitment, undertook by the guarantor in relation to the payment in favour of a compensation beneficiary, limited to the damage created, but not exceeding the limit of the insured amount, in case the performer doesn't comply with or improperly complies with the obligations established in the agreement, in relation to the guarantee period, respectively the guaranteed obligations.

Guarantee for the withheld amount

The Guaranteed of Withheld Amounts are requested to the contractor for the correct and proper compliance with the obligations to remedy the faults and finish the works which have to be performed, as a result of the acknowledgment Protocol, in order to issue the Protocol upon completion of the work.