Bank Guarantee

An undertaking, given upon request to pay a third party a specified sum of money as a

guarantee against non-observance of the terms of an agreement.

Tender Bond

Issued to the beneficiary as a guarantee, at the request of an eventual tenderer who

offers by tender, to enter into a contract.

Performance Bond

Issued to a beneficiary as a guarantee, at the request of the contractor/supplier in case

the terms and conditions of the contract entered into are not observed.

Advance Payment Bond

Issued to a beneficiary as a guarantee, at the request of the contractor/supplier should

the latter misuse the advance payment granted to him to begin the work according to

the contract.

Retention Money Bond

Issued to the beneficiary as a guarantee, at the request of the contractor/supplier in the

event of the contractor’s refusal to remedy any defects/alterations after receiving full

final payment on completion of the contract before the completion of the maintenance

period.