Performance guarantee
A performance guarantee is a bank's promise to pay the client a set amount if the contractor fails to perform the contract. It is commonly a percentage of the contract value and is returned when the contract's conditions are met.
Where you meet it
See the tendering guide. SupaJack Construct posts only the bank's commission and any cash margin actually lodged, never the face value. Related: advance payment guarantee and retention.
Why it matters
Because it is a promise and not cash, its face value belongs in the notes to the accounts, not in the ledger, while the bank's fees are a real cost of the contract.