One of the ways to ensure a contractual agreement is the guarantee of faithful compliance, which certifies the obligations that have been stipulated in the document. In this way, the insured may be compensated if the agreement is not complied with.
And while doing business with the State may lead one to believe that the use of guarantees is not necessary, it is. In fact, when a sale is awarded, in addition to the contract, you must have a guarantee. In fact, when winning a sale, you must have a guarantee, in addition to the contract itself.
Citing Public Market information, “the guarantees are intended to protect fiscal interests and support supply management, are restricted use and are used only in contracts of greater quantity, where there is a risk of non-compliance that could significantly affect the operation of the public body and the quality of the service provided to citizens “.
According to the same source, it is mandatory to request it in processes exceeding 1,000 UTM. In minor processes it will only be necessary in cases of high risk. “The value will be set based on the estimated amount of the contract and the risk. In the case of the Contract Performance Guarantee, the amount can range between 5% and 30% of the value of the contract. “, Says Public Market.
How is it obtained?
Next, we will see that there are different instruments that can be chosen to guarantee the agreements of a contract and are diverse entities that provide it:
- Bank statements: Instrument issued by banking institutions. The values will vary between each bank, and if the person or company is a client or not of the entity. The amounts range from 2.5 to 3 UF + VAT.
- Vale vista: It has a lower value than the bank deposit. One of its “disadvantages” is that it has no space to add the gloss required by the tender, unlike the bank ticket, so it is not usually a viable option for contracts in the Public Market.
- You can also use the insurance policy, which can be contracted in the general insurance companies.
- Certificate of Bond: You can use those issued by reciprocal guarantee institutions, which evaluate the applicant companies, and then define the annual (or monthly) premium that will be charged, plus a cost for issuing each document. These certificates do not immobilize capital.
If we make a comparison between all the options, the bail certificate is one of the instruments with the greatest benefits. It has less requirements for its issuance and is an instrument accessible by small companies and can be requested remotely, so that companies can save time, since they will not need to lose all the morning in the bank to request a guarantee.
Another benefit is that the bond certificate is not reported to the financial system, so the credit lines and the debt capacity in the banks will not be affected. And finally, the issuance of the certificate does not require that the amount to be guaranteed be withheld. “Failure to immobilize working capital is a benefit that makes it possible for companies, and especially MSMEs, to apply for opportunities they would not normally be able to participate in.”
Step by step to request the Guarantee of Faithful Compliance
Through the Duke of Omnium portal you can fill out a form to do the management. The steps are the following:
- The applicant must enter the contact form and complete it. The link is as follows: Duke of Omnium / contact Once the application has been sent, a business executive will be assigned who will be in charge of your case.
- That executive must be sent the Tax Folder-Option Credits of your company, updated. The information is for the person in charge to analyze it, evaluate it, and in this way look for the possibility of issuing certificates of surety for the concept of Fulfillment of Contract, Good Use of the Advance and Other Guarantees (in addition to guarantees of Seriousness of the Offer for amounts greater than 1 million pesos).
- The executive will be responsible for looking for all alternatives so that the issuance of the guarantee can be approved. This is subject to a credit assessment.
- Once the document is approved, and only if it is your first time operating with us, the client must approach the offices of Maskets to sign the respective contract.
- Once the contract is signed, the client is enabled to take guarantees of Faithful Compliance and any other concept that can not be issued through our online Duke of Omnium platform. Each time, these are managed directly with their assigned executive and the payment is made by bank transfer.
You already know when you must present a guarantee of Faithful Compliance and how you can obtain it. If you need it and want to save time, we can help you. You can make your request via online through Duke of Omnium / contact. We will wait for you!