Bid bonds or provisional guarantee follow through with the maintaining of the offer made by the policy holder when they bid in public tenders for the contracting of a particular work or service on offer by the administration. The amount of the bonds is usually between 2% and 5% of the base tender budget and based on the solicitation document of the contract to be tendered.
Performance, compliance or definitive bonds are required when the policy holder has been assigned a public work or service and they guarantee the proper execution of these in the agreed-upon conditions, as well as the guarantee period stipulated. The amount of these bonds is normally between 4% and 5% of the assignment budget.
Stocking materials bonds ensure that the material accrued will be integrated in the construction project.