Glossary

Advance Payment Guarantee

By August 30, 2021September 6th, 2021No Comments

Where a construction contractor receives an advance payment (often in the range of 10-20% of contract price) he will frequently be required to post a Bond for the same amount by way of security until the amount of work represented by the payment has been carried out. The bond will frequently incorporate a mechanism for the value of the bond to be reduced in steps as the work proceeds.