Jaminan Pelaksanaan / Performance Bond

Surety Company and Principal's promise to provide compensation to the Obligee if the Principal does not fulfill its obligations in accordance with the provisions stipulated in the contract that has been signed between the Obligee and the Principal

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The implementation bond function is as a condition for signing a work contract for the tender winner and as a guarantee if the Principal does not fulfill the obligations in accordance with the contract.

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The Work Contract is an inseparable part of the performance bond. If the Principal has carried out his obligations properly in accordance with the Contract, the Performance Bond will automatically end. If at the end of the contract there are still obligations that have not been fulfilled by the Principal, then the Performance Bond can be extended according to the agreement between the Obligee and the Principal as outlined in the contract addendum.

Obligees can submit claims to Surety if the Principal is negligent in completing the obligations set forth in the Work Contract. The amount of the claim value is in accordance with the losses suffered by the obligee or a maximum of the Bond value.

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Supporting documents to apply for an implementation guarantee is a work order (or similar documents) and / work contract. The implementation Bond value is 5% - 10% of the contract value.

The supporting documents must regulate the performance bond, the value of the bond, the bond period and the work period.