The Advance Payment Bond is necessary when an advance was received according to the contract and a guarantee of its refund must be submitted. This way, the client’s partner is certain that contractual obligations will be met, respectively the timely return of the advance payment and within the established conditions.
Advance Payment Bond Advantages:
- Increased ease of participation to tenders for public acquisition;
- Unblocked sums that would have previously been used as a guarantee of participation;
- Intact work capital, due to there not being a cash collateral requirement;
- Reduced time to issue the guarantee compared to bank procedures;
- Reduced costs;
The maximum Insurance period is 36 months.
Necessary Documents:
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The intermediate balance and its final version for the year when the evaluation request is submitted;
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Application form
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The contract signed between the two parties
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A model of the warranties’ instrument – if the Beneficiary so requires it
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The association agreement – only for associations
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Confirmation of the establishment of a counter-warranty: a guaranteed promissory note without tenor or a check file without an emission date on the insured sum – for the issuance of the policy
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Confirmation of payment of the insurance premium – for the issuance of the policy
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