We are firmly committed to our partners, companies that sign public procurement contracts, guaranteeing good practices and fulfilling the assumed contractual obligations.
The performance guarantee is required at this stage to insure the beneficiary in the event of non-compliance or improper or delayed performance of the contractual obligations assumed by the contractor. The policy usually has a validity of 3 years, both in the case of building contracts and in the case of supply contracts of products or services. The validity of the Good Performance Guarantee covers the period of execution of the work or may also cover the period of maintenance / notification of defects. The value on which the performance guarantee must be calculated is determined by the Contracting Authority and could be equal to 5% -10% of the value of the contract (2.5% -5% for SMEs).
- Reduced costs compared to bank guarantee letters
- This avoids working capital blockage
- The policy allow participation in multiple public procurement procedures
- Specialised advice during the contract
- Issuance of the guarantee quickly and efficiently
- Issuance of the guarantee both irrevocably and unconditionally and conditionally
- Reduces the risks for the insured, provided that the payment is conditional on proof of non-fulfilment of a contractual obligation