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Rules of Advance Payment Guarantee

Pursuant to article 8(a) of the Government Procurement Regulations, the following rules must be observed:

  1. The advance payment guarantee must be equivalent to the advance payment disbursed to the contractor.
  2. The guarantee shall be valid until the advance payment is recovered in full.
  3. The government agency must notify the issuing bank to reduce the value of the guarantee by an amount equal to that recovered from invoices on the date of recovery and with no request by the contractor. This procedure must be applied even if the government is delayed in paying the invoices for reasons the contractor is not responsible for.