How important is the administrative bond in fulfilling a contract?

The objective of the administrative bond is to guarantee compliance in time and form with legal and economic obligations acquired during the execution of a contract.

These obligations can be derived from order, purchase order or a work contract, all concluded between two or more people, which 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.

 

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 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.