Quality Guarantee, also known as maintenance guarantee, refers to the supplier or contractor application, to the buyer or owner of the buyer or owner to ensure that the quality of the goods or works do not comply with the contract and the seller or contractor and can not be replaced or repaired, according to the buyer or the owner of the claim to be compensated for the written documents. In the import and export trade, the importer in order to ensure that the quality of goods in line with the requirements, often require the exporter to submit a quality assurance letter, that is, to ensure that the delivery of quality standards in accordance with the contract, if the quality of the goods are found to be inconsistent with the provisions of the exporting party is responsible for the return of the replacement or compensation for the loss; Otherwise, by the guarantor of the payout. The guarantee amount of the quality guarantee is generally 5% - 10% of the contract amount, and the validity period is determined by both parties according to the negotiation of the transaction needs. The scope of application of the quality guarantee 1, applicable to the project contracting, supply and installation of the contract execution into the warranty period or maintenance period, the owner or buyer requires the contractor, the supplier to good performance of the warranty obligations. 2, in the project contracting, supply and installation of the project into the warranty period or maintenance period, the owner, the buyer in order to avoid the quality of the project, the quality of the goods does not conform to the provisions of the contract, the contractor, the supplier is unwilling to or not to repair, replacement and maintenance, resulting in a loss of the contract, and the contractor, the supplier is unwilling to or not to repair, replacement and maintenance, resulting in the contract. Repair, replacement and maintenance, resulting in their own losses, often require contractors or suppliers in the performance bond before the expiration of the term to provide quality assurance, its behavior in the warranty period to constrain. The role of the quality bond 1, to the owner, the buyer. Rights and interests are fully protected. 2, to the contractor, supplier. Improve the market competitiveness of the contractor, supplier. Retention bond, also known as retention bond, quality assurance bond, retention bond, retention bond or tail payment bond, is the exporter or contractor to apply to the bank for the issuance of the importer or the project owner as the beneficiary of the bond, to ensure that after the early recovery of the final payment, if the seller to provide the goods or contracted works do not meet the quality standards specified in the contract, the exporter or the contractor will be part of the retention of the money returned to the importer or the owner of the works. Otherwise, the guaranteeing bank will pay compensation. In foreign project contracting, the project owner usually retains 5-10% of the project amount as retention money, which is paid to the contractor when the warranty period of the project expires without defects. If the contractor needs the owner to pay the full amount without withholding the retention money, he should submit a retention bond issued by the bank to ensure that the bank is responsible for the return of the retention money at the expiration of the warranty period of the project if it receives a written notice from the owner that the project is defective. The key points in the audit of the engineering category of the warranty bond have three key points: 1. The validity of the warranty bond should be subject to the payment of the final payment as a prerequisite. That is to say, the owner pays 5% of the final payment, the contractor will deliver 5% of the warranty bond; the owner pays 10% of the final payment, the contractor will deliver 10% of the warranty bond. Should be avoided in the case of the owner has not yet delivered the final payment, the contractor's warranty bond but early effective provisions. 2, the warranty bond amount should not exceed the amount of the final payment of the project, usually for the contract price of 5% or 10%, up to a maximum of 10%. 3, the warranty bond should be aimed at the expiration of the certificate of acceptance of the final certificate of issue date. In order to avoid the owner to postpone the issuance of the final acceptance certificate for an indefinite period of time, can also strive to provide: this warranty bond guarantee in the elimination of the date of completion of the project or the date of issuance of the final acceptance certificate expires, whichever occurs earlier, but in any case not later than ? In any event, not later than Month? date. Performance Bond means that the bidder and the successful bidder become the Offeror and the Contractor upon signing the contract. The contractor must provide the contractor with a performance bond issued by the bank, which is generally 10%-15% of the contract amount, to ensure that the contractor performs according to the terms of the contract. Otherwise, the bank is responsible for compensating a certain amount up to the total amount of the performance bond. Conditions to be met by the applicant? Open an account with the applicant bank;? Have the ability to fulfill the contract under the guarantee;? The project complies with national regulations;? Provide a bond or counter-guarantee that meets the requirements. Procedures for Handling Performance Guarantee? The applicant applies to the bank to open a letter of guarantee and provides relevant information;? The bank conducts investigation and examination;? Sign an agreement and implement the security deposit or counter-guarantee;? Open a performance bond. Scope of applicationThe scope of application is very wide, and can be used in any project to provide guarantee for the parties to fulfill their contractual obligations, and is commonly used in projects such as engineering contracting, material procurement and so on. In the project contracting, material procurement and other projects, the owner or buyer in order to avoid contractors or suppliers do not fulfill their contractual obligations and cause losses to themselves, usually require contractors or suppliers to pay a performance bond, in order to constrain each other's behavior. A performance bond is a good alternative to a cash bond. Advantages of performance bond for contractors or suppliers: reduce the cash deposit caused by a long time funds accounted for, to obtain capital gains; compared with the cash deposit, can make the limited funds to optimize the allocation; rights and interests are better maintained. To the owner or buyer: reasonable constraints on the contractor, supplier behavior, good maintenance of their own interests; to avoid the collection and return of the deposit procedures are cumbersome, improve work efficiency.