Guarantees HR Bank

Tender Bond 

The Tender Bond or Bid Bond are frequently demanded in connection with public invitations to tender. The purpose of the Tender Bond is to assure that on acceptance of a bid by the contracting Authority, the contractor will proceed with the contract and will replace the Tender Bond with a Performance Bond.

Performance Bond 

The Performance Bond covers against failure to complete a contract work due to insolvency or default, or inability to honor a contract awarded. The purpose of the Performance Bond is to assure payment of a sum (not exceeding a stated maximum) of money in case the contractor fails in the full performance of the contract.

Advance Payment Guarantee 

The Advance Payment Guarantee is a guarantee supplied by a party receiving an advanced payment to the party advancing the payment. The purpose of the Advance Payment Guarantee is to assure that the advanced sum will be returned if the agreement under which the advance was made cannot be fulfilled.

Retention money guarantee

The retention money guarantee is used to secure the correct repayment of an amount paid in advance by the beneficiary if the applicant/instructing party fail to meet its contractual

obligations during the warranty/guarantee period. The guarantee secures that the final completion of the contract will be properly fulfilled.

Warranty Bond

The warranty bond (also known as a maintenance bond) guarantees for the owner of the project, that the contractor will solve all warranty issues during the specified warranty period, which is usually 1 year from completion/acceptance of the project. The warranty period could be longer depending on the terms of the contract.

Payment Guarantee 

The Payment Guarantee provides the beneficiary with financial security should the applicant fail to make payment for the goods or services supplied as stated in the contract. The purpose of the Payment Guarantee is to assure the seller that the purchase price will be paid on the agreed date. 

Standby Letter of Credit

The Standby Letter of Credit is a financial instrument used primarily in international trade. The purpose of the Standby Letter of Credit is to assure that the seller (beneficiary) will receive payment upon the presentation of specified documents in the event the buyer fails to pay the beneficiary according to the terms of the contract.