Insurance "Guarantee in favor of the contracting authority" is a contract established between three parties, which guarantees the fulfillment of obligations. In essence, it is a mechanism for transferring risk. In this case, funds are not blocked, and no seizure is imposed on the contractor's assets.
Types of Guarantees:
- Advance payment guarantee - secures the funds provided in advance under the contract
- Good performance guarantee - covers the risk of non-fulfillment or inaccurate fulfillment of the insured's obligations under a specific contract
- Maintenance and warranty service guarantee - secures the insured's obligations regarding warranty service under the contract
- Other guarantees