The difference will very much depend on the country that you are issuing the bond into. Most markets are very different to the US market where you are constrained due to the Miller Act and the 100% contract bond requirements. It is quite usual in many countries to have an on demand performance bond requirement (instead of the 'default' type bonds you issue in the USA), limited to 10% of the contract value. Let me know if you have a specific country in mond and i will let you know about common practice in that country. |