May a deduction be made from the performance bond while the contract work is continuing?

Decision number:

2023/UH.I-1614

Decision date:

11 June 2026

In service procurement the performance bond and the progress payment have different legal functions. According to a Public Procurement Board decision, although a deduction may be made from the progress payment for missing or lost materials while the contract is continuing, a provision allowing a direct deduction from the performance bond is another matter.