Latest regulations on quality deposit of procurement contract

If the procurement documents require the supplier who wins the bid or clinches a deal to submit the performance bond, the supplier shall submit it in non-cash form such as check, draft, promissory note or letter of guarantee issued by financial institutions and guarantee institutions. The amount of the performance bond shall not exceed 10% of the government procurement contract amount.

There is not necessarily a quality deposit in a purchase contract, but the parties to the contract may agree on a quality deposit. Warranty, that is, quality guarantee, is generally used for cash transactions or large transactions, or for materials that cannot be confirmed in a short time.

Some formal companies often use quality deposit, usually to prevent the poor quality of suppliers from causing losses to the company's property. The specific proportion required by each company is actually different, generally 20%, that is, when purchasing this batch of goods, the purchaser will detain or pay less than 20% until the quality is guaranteed after inspection.

In fact, as long as both parties agree, the warranty money can be detained. In most cases, a certain amount of quality deposit needs to be withheld when signing an equipment contract, and it will be returned after the contract is completed. The purpose of the project quality warranty payment stipulated in the construction contract of the construction project is to ensure that the funds needed for the project warranty are in place in time, and it is a guarantee measure to constrain the construction unit to fulfill its warranty obligations. Therefore, the quality warranty payment should be processed after the warranty period expires.

Quality warranty money is mainly used to guarantee the quality problems after the completion and acceptance of construction projects, so what can be set should be set.

Legal basis: Article 502 of the Civil Code of People's Republic of China (PRC), a contract established according to law shall come into effect upon its establishment, unless otherwise stipulated by law or agreed by the parties.