Getting to know how to use is critical for any business that is planning to work with the public sector, especially on . The risks – all the more when working overseas – are always high. Many projects are affected by unforeseen events, from weather to the failure of a supplier or delays in delivery of essential materials.
The purpose of a guarantee is to reduce the uncertainty and bring security to the financial aspects of the contract so that all parties can be on good terms and the project is completed. A Performance Guarantee is provided by the contractor to the developer, covering the damages your customer may suffer if you (as the contractor) cannot deliver on your side of the deal. A Payment Guarantee protects workers, material suppliers and subcontractors against non-payment. Both of these types of guarantees are essential to win public contracts.
Other types of guarantees can be used to help your business win and benefit from significant contracts with the public sector. For example, an Advance Payment Guarantee will secure any monies paid by the contractor before work begins. A Bid Guarantee protects the project's owner if the bid is not honoured. In many public sector contracts a Bid, Payment and Performance Guarantee may be required by law.
We have worldwide experience of working with and other sectors where public sector contractors are placed. With our understanding of the dynamics of trade and the fine detail of guarantee management across the world, we take those simple principles and build agreements that are tailored for your needs.