Types of Administrative Bonds in Mexico
In our country, the Administrative Bonds, have like objective, assure the fulfillment of different types of contract, in which they can include legal and economic obligations, derived of orders of purchase, contracts of work or orders. These contracts are held between two or more people, which may be of a physical or moral nature.
The types of Administrative Guarantees that exist in Mexico are:
Advance payment: It is in charge of guaranteeing the correct use and application of the money that is delivered to the guarantor as an advance payment by the beneficiary, for the execution of the works established in a work contract. The advance deposit guarantees the total or partial return of the money in case it is not used correctly and what is established is not carried out in a timely manner.
Good Quality and / or Hidden Vices: Its function is to ensure the good quality of the built work, as well as the material and equipment installed or sold to the beneficiary by the guarantor. By means of this type of Bond, the repair of the damage is insured if, after the work is delivered and within the time stipulated in the contract, defects or hidden defects appear.
Fulfillment: Through this type of bond, it is sought to ensure total or partial compliance with the obligations established in a work contract, so that the beneficiary is guaranteed that the company that is providing a service, will perform the work according to the agreed. In the event that this does not happen, the Compliance Bond may be valid.
Credit: This type of Administrative Bond is valid only before PEMEX, CAPUFE and CFE. Its function is to ensure that the obligations consistent with the payment of money are carried out as agreed in the contract that is involved.
Competitions and / or Bidding: The purpose of this type of bond is to guarantee the support of the offers made by those involved in tenders or contests, which may be public or private, all of them carried out for the purpose of determining the contractor who will be responsible to carry out the work in question.
Do you have a client (government or private), who asks you to ensure the fulfillment of a contract by means of a bond? In us, we can support you with the processing of your Administrative Deposit!