Guarantees required of contract holders

In accordance with international trade practices, particularly in the field of construction contracts, contractors wishing to export their services are required to provide their customers with guarantees or "bonds" to ensure that the work is carried out properly and that the project is completed.

The projected duration and size of works contracts increases the risks for the foreign buyer, who fears that the exporter will contest his responsibility in the event of poor or non-execution of contractual obligations, and who therefore seeks to protect himself against a refusal to carry out work, or to repair a construction defect, for example.

The main guarantees required of contract holders are bid bonds and performance bonds, both of which can be qualified...