A guarantee Deposit or Advanced Payment Bond is a type of Contract Bond to ensure the Obligee that the advance payment will be refunded if the Principal fails to carry out the work/fail in accordance with the provisions of the exchanged in the contract.
The magnitude of the value of the collateral is generally 5% to 20% of the contract value or determined by the Obligee.
Advanced Payment of Bond or Surety Bond may be Bank guarantees, as listed in the contract.
In other words, the definition of Advanced Payment Bond is a Surety/Guarantor shall pay to the recipient of the Guarantee/Obligee if Assured/Principal expressed tort in meet its return the rest of the down payment has been given The recipient of the Guarantee/Guaranteed to the Obligee/Principal in accordance with the contract between Obligee warranty/Receiver with Assured/Principal.
Warranty Claim Procedure In Advance
In case of tort, warranty/Recipient Obligee is obliged to convey the documents supporting the claim as follows, including the following:
- Proof of payment of an advance by the giver of the Obligee to Secure bail//Principal;
- Letter of Guarantee Disbursements from the submission of the Obligee;
- Proof Of Termination Of Employment/LAYOFF;
- Evidence of News of the proceedings Last Job Results and calculation of the rest of the down payment, at least signed by an independent consultant who has been appointed since the signing of the contract;
- Warning letter (if this is set out in the contract);
- Original certificate of Advanced Payment Bond.