From July 30, it will be necessary to issue Bank guarantees for public procurement under the new rules
The government has made changes to the rules of registration of Bank guarantees in the field of public procurement. The new requirements are due to the fact that from July 1, 2019 the contractor additionally ensures the performance of warranty obligations, if they are in the contract.
If the contractor chooses a Bank guarantee as a security method, it will need to include a provision on the customer's right to require the Bank to pay the amount under the guarantee in case of violation of the contractor's warranty obligations. The requirement can be presented both in paper and electronic form.
The warranty does not include:
regulation on the right of the Bank to refuse to the customer if there was no notification of violation;
the requirement to provide the Bank with a report on the performance of warranty obligations.
The new rules will come into effect on 30 July 2019.
Document: RF Government Resolution from 18.07.2019 N 920 (effective for 30.07.2019)