Contract Securitization: Bank Guarantee for Warranty

This Skill Bit explores Bank Guarantees specifically tied to warranty obligations. These guarantees, similar to Performance Bonds, ensure that contractors or suppliers fulfill their post-completion responsibilities, such as repair or replacement of defective work during the warranty period. By providing financial security to project owners, these guarantees mitigate risks associated with non-performance, offering assurance that any defects or issues will be addressed. The course covers the fundamentals of warranty guarantees, how they differ from performance bonds, and their critical role in long-term contract compliance.

Duration approx. 4 Min.

Tier: proficiency

A part of Building an Effective Procurement Management Plan course.