Bonds In International Construction Contracts: What They Are

In international construction projects, it is standard practice for the Employer to request guarantees to secure the performance of the Contractor. The most frequent guarantees are the bid bond, the advance payment bond, the performance bond and the warranty bond. Let's see the features of each of them and then the form that they usually have in the practice.

If you are already familiar with bonds in construction contracts and wish to read some tips for negotiating a bond you may wish to read our article:

Bonds in Construction Contracts: 5 tips for negotiation

If not, you can have an overview here below.

1. What is a Bid Bond?

The Bid Bond is granted in favour of the Employer to secure that the Contractor/tendered duly complies with its obligations either during the tender phase or afterwards.