Performance Bonds: Issues and Solutions

12 August 2023

Contracting authorities that procure under the Public Procurement Law are vested with powers of sanction, such as forfeiture of securities and debarment from tenders, for the purpose of ensuring that contractors act in accordance with the legislation. In tenders held under Public Procurement Law No. 4734, the amount of the performance bond is calculated, before the contract is concluded, on a monetary value not lower than 6% of the tender price of the tenderer to whom the tender is awarded.