Is the irrevocable undertaking issued by the bank to a buyer/contractor guaranteeing that the buyer/contractor will comply to its obligations under the contract. If buyer/contractor fail to comply the bank will be liable.
TYPES OF GUARANTEE ISSUED BY ACCESS BANK
- 1. BID/TENDER Guarantee (bond)
- 2. PERFORMANCE Guarantee (bond)
This is a guarantee issued to contractors for tendering the work. The percentage required is from 2-5% of the contract amount.
It must be fully secured by either Mortgage or Cash
Issuing fee is 0.5% of the guaranteed amount with minimum fee of 20,000 TZS
This is a guarantee issued to contractor(s) to enable them execute contracts awarded to them. The percentage required is from 2-10% of the contract sum.
It must be fully secured by either Mortgage or Cash cover
Issuing fee is 0.5% of the guaranteed amount with minimum fee of 50,000 TZS