1. Bonds and Guarantees and Contractors
... contractor. The obligation to pay money is commonly capped at 10% of the contract sum until completion of the works and then at 5% until the rectification of defects notified in the warranty period is complete. These sums and periods are, however, a matter of negotiation. A guarantee is given by a third party (a guarantor) to provide an undertaking to a beneficiary that the guarantor will answer ... Engineer. If the terms of the Performance Security specify its expiry date, and the Contractor has not become entitled to receive the Performance Certificate by the date 28 days prior to t...
- Word Count: 2631
- Approx Pages: 11
- Grade Level: High School