TENDERS AND/OR BIDS
It guarantees the seriousness of the bidder’s offer or budget and, specifically, the maintenance of its prices for the established time.
Normally the amount of this deposit is between 5% and 10% of the amount of the proposal.
Term.- The validity of this bond is for the time the bidder maintains current prices, although in practice, the bond is canceled when the winner of the bid is appointed and the respective Order or contract is signed.
ADVANCE PAYMENT
Ensures adequate investment or repayment of the advance payment granted or, if applicable, its total or partial repayment.
The amount of the deposit corresponds to the amount of the advance that is granted, which may be 10%, 20%, 30%, 50% or up to 100% of the value of the Contract or Order.
Effective date: This bond remains in effect until the amount of the advance payment has been repaid or, in its case, has been totally or partially returned to the Beneficiary.
COMPLIANCE
It guarantees the fulfillment of the different obligations established in the Contracts or Orders and mainly those that refer to delivery times or execution of works, and quality of materials.
This bond generally guarantees compliance with each and every one of the established obligations; however, it can provide a guarantee of compliance with a single clause or specific obligation.
The amount of this type of bond is generally between 10% and 50% of the total amount of the contract or order, and may reach up to 100%.
Validity: The duration of this bond shall be for the term of execution of the work or delivery of the goods, or as long as the specific conditions or clauses that have been guaranteed by the bond remain unfulfilled.
QUALITY OR HIDDEN DEFECTS
Guarantees the proper quality of the Works, Goods or Services delivered to the Beneficiary for a determined period of time and, if applicable, the repair of any damages or hidden defects that may result at the expense of the supplier or contractor.
In the case of Public Works and Goods or Services delivered to the Public Sector Agency, the amount of the bond shall correspond to 10% of the total amount of the Contract or Order.
Validity: For the period of time that has been established as a guarantee. Normally a one-year term.
