"Regulations for the Implementation of the Bidding Law of People's Republic of China (PRC)" requires the winning bidder to submit the performance bond in the bidding documents, and the winning bidder shall submit it in accordance with the requirements of the bidding documents. The performance bond shall not exceed 10% of the winning contract amount.

commercial contract

1. (commercial contract) The contract performance bond refers to the monetary guarantee provided for the performance of the contract. And return it when the contract expires or is dissolved according to law. It is not a legal way to guarantee debts, and its nature and effectiveness lack legal basis.

Futures field

(2) In the field of futures, the margin deposited in the trading account by the buyer and seller of futures contracts or option sellers to ensure the performance of the contracts. Commodity futures deposit is not a stock payment, nor a deposit for trading commodities, but a good reputation deposit.

Extended data:

The performance bond collection standard should follow several principles:

First, the amount of performance bond is greater than the amount of contract advance payment to avoid possible risks;

Second, the amount of performance bond should be equal to or slightly higher than the bid bond. Projects with high technical content and unable to perform on time will bring huge losses to the purchaser, and the amount of performance bond should be appropriately increased;

Thirdly, the determination of the amount of performance bond should be related to the contract payment terms, and it is preliminarily assumed that the relationship between them should be inversely proportional, that is, when the installment payment terms are beneficial to suppliers, the performance bond should be overcharged, and vice versa.

References:

Baidu encyclopedia-performance bond