Deposits: how do they work and what are the main types?

The bail, or surety, is a contract involving three parties :

The guarantor (the insurance company)

The beneficiary (the one who must receive the payment)

The contractor (the company that insures)

In short, with the suretyship policy the guarantor undertakes to pay the beneficiary the sum owed by the contractor in the event that the latter is unable to fulfill its contractual obligations (for example, complete a work), following the payment of a premium , i.e. the cost of the insurance deposit , by the contractor bail bonds pittsburgh.

This type of guarantee is often required of companies by law to participate in tenders or to obtain concessions or licenses .

The benefit from the point of view of the contracting company is that of being able to participate regularly in the tenders in which this guarantee is envisaged, while the advantage for the beneficiary consists in the certainty that the contractual obligations will be guaranteed.

At the same time, the beneficiary of a surety will have the certainty of being protected by a specialized company, which, before issuing the surety, carefully checked the applicant’s entire financial situation and solvency.

In this article we will see what are the main types of sureties or guarantees:

Contract guarantees

VAT refund guarantees

Customs guarantees.

Guarantees for contracts

Sureties relating to tenders are an important and useful tool that assists the contractor and beneficiary in the execution and management of the services provided for in the contract.

The first type of surety for tenders that we are going to examine in this article is the provisional bond. The latter is in fact a prerequisite for participating in a tender .

This form of guarantee is required by the public administration according to the Public Contracts Code, to ensure the effective performance of the services, works and supplies by the company that wins the tender.