Bank Guarantees in Construction Project | PBG, ABG, RBG | Contract Administration

[@nakulmaheshwari000]

What's the purpose of a RBG? The client / employer already has rights to claim under the PBG for any contract & performance conditions that haven't been delivered by the contractor. So practically, what's the purpose of the RBG? Is it just extra insurance for the employer?

[@QuantitySurveyingStudio]

RBG is used by contractor to claim the final half of retention amount before the defect liability period.

[@nakulmaheshwari000]

​@@QuantitySurveyingStudio Yes I get what it does. But the question is more about its strategic purpose and benefits.

[@galaxy5583]

great informative

[@QuantitySurveyingStudio]

Glad it was helpful!

[@mohamedabdullah1506]

I not understand about PBG? It's for what' purpose? Because there is no deduction made and not realese made. Please explain clearly for me

[@QuantitySurveyingStudio]

It is required by client from contractor for satisfactory completion of project adhering to all terms and conditions. Once project is completed and performance certificate issued, the same is returned back to contractor. If any terms or conditions violated as per contract, client/employer has the right to claim it.

[@shareefshaik9690]

Hi great info ..
can u attach the same excel file for the reference

[@QuantitySurveyingStudio]

Sorry

[@ab2_3000]

Is the RBG submitted by contractor or employer?

[@QuantitySurveyingStudio]

Contractor proposes RBG submittal to employer for getting the Retention amount at an earlier stage.

[@muhammadowaiskhan8559]

How much PBG in general ?

[@QuantitySurveyingStudio]

10% of contract value

[@yuvarajasubramaniyam6578]

Performance bank guarantee must contractor should pay to client, MEP QS related book tel.me

[@QuantitySurveyingStudio]

It is a bond submitted by contractor to client for carrying out the contractual obligations in the right way