Surety Bonds

A form of guarantee requested by the obligee (project owner) to the principal (project implementer) or the insured with a view to stating the principal's ability to carry out his work in accordance with the contract/agreement.
Types of Surety Bond guarantees include:

1. BID BOND

Bid Guarantee is a bid bond, which is a written commitment given by the bank to the recipient of the guarantee that the bank will pay a sum of money to him if the guaranteed party does not participate in the auction and does not close the charter contract in the event that the bid is accepted. The amount of the Bid Guarantee is 1% - 3% of the Contract value

2. PERFORMANCE BOND

Performance Guarantee is a letter that functions to guarantee the implementation of the work in accordance with the contract, the provider must provide a guarantee for the implementation of the PPK at the time after the issuance of the SPPBJ and before signing the Contract for the Procurement of Goods/Construction Work/Other Services, with a validity period from the date of the contract until the handover of the goods/services. Others or first handover of Construction Works. The amount of the Performance Guarantee is 5% of the Contract value.

3. ADVANCE BOND

Advance Payment Guarantee or Advance Payment Bond issued by the Surety Company to guarantee the Obligee that the Principal will be able to return the advance he has received from the Obligee in accordance with the terms agreed in the contract, with a view to facilitating project financing. The amount of the Advance Payment Guarantee is a certain percentage of the value of the project contract itself, which is 20% – 30% of the project contract value

4. MAINTENANCE BOND

Maintenance Guarantee is a guarantee letter that functions to guarantee the implementation of Maintenance Work provided by providers of Construction Works or Other Procurement Services that require a maintenance period in requesting 100% payment (Maintenance Guarantee is not used in Procurement of Goods and Consulting Services), with a validity period starting from the work maintenance up to 14 (fourteen) working days after the maintenance period is over. The amount of the Maintenance Guarantee value is 5% of the Contract value.