- Final Guarantee

The final guarantee is a monetary amount or a guarantee document provided by the winner of the tender to the announcing party as a commitment to execute the project or provide services in accordance with the agreed terms and specifications of the contract. This guarantee represents a commitment from the contractor or supplier to perform the required work according to the specified timeline and required quality.

The final guarantee is usually calculated as a percentage of the total value of the project or contract, ranging from 5% to 10% depending on the nature of the project and the requirements of the announcing party. The final guarantee is normally provided in the form of a bank guarantee letter, bank check, or any other financial format approved by the announcing party.

The function of the final guarantee is to protect the announcing party from the risks associated with the non-performance of work or services as stipulated in the contract. In the event of a default or breach of contract terms by the tender winner, the announcing party has the right to confiscate the final guarantee to compensate for the resulting damages.

The final guarantee remains valid throughout the project execution period and may extend in some cases to the post-completion period, especially in projects requiring long-term quality guarantees such as constructions or technical contracts. Once the project is completed and delivered according to specifications, the final guarantee is returned to the contractor or supplier.

The importance of the final guarantee lies in enhancing the announcing party's confidence that the tender winner is committed to executing the project efficiently. For the winner, providing the final guarantee is a necessary step to ensure the continuation of the contract and avoid legal disputes.