Section Bid Bonds and Performance Guarantees Published: Date Published on Zhilianhai
What each one covers Instrument Purpose Typical form Bid bond Prevents withdrawal during validity Bank guarantee or insurance Performance bond Covers delivery and performance 5–10% of contract value Advance payment guarantee Protects prepayment Matches the advance Retention Covers defects after acceptance Withheld from payments
Practical notes Check whether the guarantee must be from a local bank. Confirm the release conditions and expiry, so money is not locked up unnecessarily. A buyer should keep acceptance criteria clear — otherwise the security gets disputed rather than called. Information is provided for initial research. Verify specifications, pricing, policies and standards against the original source before making decisions.
