The purpose of performance guarantee is to prevent the contractor from violating the contract provisions or breaching the contract during the execution of the contract and make up for the economic losses caused to the employer. Its forms include performance bond (also called performance guarantee), performance bank guarantee and performance guarantee. The performance bond can be confirmed check, bank draft or cash check, and the performance bond shall not exceed10% of the winning contract amount; The performance bank guarantee is the guarantee issued by the winning bidder to the bank, and the amount is within 10% of the contract price; Performance bond is a bond issued by an insurance company, trust company, securities company, entity company or social guarantee company, and the amount of guarantee is 30% of the contract price. The Employer shall return the performance guarantee to the Contractor within 28 days after the project acceptance certificate is issued.
The performance bond collection standard should follow several principles:
First, the amount of performance bond is greater than the amount of contract advance payment to avoid possible risks;
Second, the amount of performance bond should be equal to or slightly higher than the bid bond. Projects with high technical content and unable to perform on time will bring huge losses to the purchaser, and the amount of performance bond should be appropriately increased;
Thirdly, the determination of the amount of performance bond should be related to the contract payment terms, and it is preliminarily assumed that the relationship between them should be inversely proportional, that is, when the installment payment terms are beneficial to suppliers, the performance bond should be overcharged, and vice versa.