Guarantees and Bonds: Practical Administration
What to manage
| Item | Practice |
|---|---|
| Issuance lead time | Start bank discussions before the deadline |
| Wording | Match the required text exactly |
| Validity | Cover the whole contract plus extension |
| Storage | Keep the original safe and recorded |
| Release | Diarise the release date and claim it |
Common problems
- A bond that expires before completion leaves you in breach.
- Instruments left in place long after the project ends.
- Wording differences that the issuer rejects at submission.
Bond requirements are contractual and legal. Confirm the exact wording with the issuer and your bank.