Security

Security is of three kinds: the bid bond, the performance bond and the additional performance bond. The bid bond is the amount given by persons wishing to participate in a tender, not less than 3% of the price offered, calculated on the instruments listed in Article 34 of Law No. 4734. The performance bond is taken before the contract is signed, in order to secure performance of the undertaking in accordance with the contract and the tender documents, at 6% of the tender price where that price is equal to or above the threshold value, and at a rate of the estimated cost where it falls below.