Bank Guarantee ضمان بنكي
Definition
A bank’s undertaking to pay on the contractor’s default: a bid bond with the offer, a performance bond after award, and a third against the advance payment — all of them unconditional and payable on demand.
Example
A 5% performance bond valid until preliminary handover.
Where it is used
Securing tender and execution obligations.
Related terms
From the term to the work
Etimadco turns these concepts into daily working tools for your projects.
Start free