request a 10% cash deposit to submit a tender for a contract.

SPECIAL REQUIREMENTS

The customer needs to set a limit for such obligations with the Bank. A counter indemnity from the customer needs to be undertaken.

PERFORMANCE BOND

A performance bond is given in support of a customer's obligation to fulfill a contractual commitment. Normally required after a customer has been awarded a contract to perform.

BENEFIT

When a performance bond is issued on behalf of a customer, the Bank guarantees to the third party (buyer or employer) that the Bank will pay any claims that may arise due to non-compliance or faulty completion by the supplier or contractor, up to the total value of the amount guaranteed.

In the absence of this guarantee, customers who are awarded contracts after tendering might be required to put cash up-front, which would strain on cash flows.

ADVANCE PAYMENT BOND

This is need when the contract terms provide for specified amount of the total contract to provided up-front to the contractor in order to facilitate cash-flow and operations. The Bond guarantees that in the event that the obligations are not met the Bank will refund the amount of the Advance Payment to the third party.

PROSPECTIVE CUSTOMERS

All corporate customers involved in tendering or supply of goods to large organisations, government and or for foreign companies intending to tender for work in Zambia.