DFCC Bank provides specialised Guarantees for Contractors. These Guarantees include Bid Bonds, Performance Bonds and Advance Payment Guarantees.
A Bid Bond ensures that on acceptance of a Bid by the customer, the contractor will proceed with the contract and will replace the Bid Bond with a Performance Bond. The guarantor will pay the customer the difference between the contractor's Bid and the next highest Bidder. This difference is called Liquidated Damages, which cannot exceed the amount of the Bid Bond.
An Advance Payment Guarantee is supplied by a party receiving an advance payment to the party advancing the payment. This means that the advanced sum will be returned if the agreement under which the advance was made cannot be fulfilled.