Contract security

Performance guarantee: size and cost

Input

Guarantee cost

5–10% range: 45 000–90 000 ₴

63 000 ₴

Bank fee
1 500 ₴
% of contract
0,17%

Performance security: 5–10% of contract sum (per law). Guarantee costs 0.5–2% p.a. + ~1500 minimum fee. Alternative — cash collateral, but it freezes working capital. Include guarantee cost in your bid price.