A bank guarantee that is requested by a beneficiary to ensure that the contractor is bidding in good faith and will enter the contract if awarded is called a(n)
A) tender guarantee or bid guarantee.
B) performance guarantee.
C) maintenance guarantee.
D) advance payment guarantee or repayment guarantee.
E) None of the above

Question

Quizplus · Accepted Answer

A tender guarantee or bid guarantee ensures the contractor is bidding in good faith.The performance guarantee is used to insure that the contractor finishes the project.The maintenance guarantee is used to ensure that the contractor performs the services necessitated by the contract after the completion of the project.The advance payment guarantee or repayment guarantee?is used to ensure that payments made by the beneficiary in advance of the work would be reimbursed if the contractor fails to start the project.

A Bank Guarantee That Is Requested by a Beneficiary to Ensure