GUARANTEE

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 the buyer/contractor fails to comply, the bank will be liable.

TYPES OF GUARANTEE ISSUED BY ACCESSBANK

  • BID/TENDER Guarantee (bond)
  • PERFORMANCE Guarantee (bond)

 

BID/TENDER GUARANTEE (BOND)

This is a guarantee issued to contractors for tendering the work. The percentage required is from 2-5% of the contract amount.

Condition

  • It must be fully secured by either Mortgage or Cash

 

Pricing

Issuing fee is 0.5% of the guaranteed amount with minimum fee of 20,000 TZS

PERFORMANCE GUARANTEE (BOND)

This is a guarantee issued to contractor(s) to enable them to execute contracts awarded to them. The percentage required is from 2-10% of the contract sum.

Condition(s)

  • It must be fully secured by either Mortgage or Cash cover

 

Pricing

Issuing fee is 0.5% of the guaranteed amount with a minimum fee of 50,000 TZS