Introduction

It is the written document issued to the owner or the buyer from Bank of China to guarantee that applicant will fulfill contract obligation in the warranty period or maintenance period, at the request of construction contractor or supplier.

Features

1. It is applicable for the situation that the owner or the buyer requires the contractor or the supplier to fulfill warranty or maintenance obligations as contracted when construction, supply and installation contracts enter into the warranty period or maintenance period. It is the guarantee for normally fulfilling contract obligation.

2. Solve the problem of mutual mistrust between both parties of a transaction. With good reputation, the Bank involves in the transaction and acts as a guarantor to promote smooth transaction by providing guarantee for the parties.

3. Guarantee fulfillment of contractual obligations, as well as quality of the subject matter of contract.

4. Reduce capital occupation due to cash margin payment.

5. Improve market competitiveness of construction contractor or supplier, and accelerate returns of accounts receivable.