Administrative bonds and their importance in the conclusion of contracts
The main function of administrative bonds is to guarantee compliance in time and form with the legal and economic obligations acquired during the execution of a contract
The aforementioned obligations can be derived from an order, purchase order or work contract. These contracts, concluded between two or more persons, can be both physical and moral.
There are several types of administrative bonds , which vary depending on the type of obligations or contracts whose compliance is being sought.
What are the different types of administrative bonds?
Compliance: Probably the most common, as it is requested in most contracts to ensure that the company that provides a service, carry out the work according to the established.
Advance: It guarantees the good use and correct application of the money that is delivered in advance, for the correct execution of the works established in a work contract. Otherwise, you can ensure the return of money through this deposit.
Good quality and / or hidden defects: They guarantee the good quality of the built goods, as well as the material or equipment that has been installed or sold to the beneficiary by the guarantor. In case that after the work is delivered, hidden defects appear, the repair of the damage will be ensured.
Competitions and / or Bidding: They focus on guaranteeing the sustainability of the offers made by those who participate in contests or bids, carried out in order to determine the contractor who will be responsible for carrying out the corresponding works.
Credit: It is used to guarantee that the consistent obligations in the payment of money before they are carried out.
If any client, whether private or government, requests an administrative bond to ensure that a contract is fulfilled, you can process it with us in a safe and efficient manner.