Payment Bond Question

[mauricio]

Hello,

I work for a manufacturer in Europe. A company from Puerto Rico just won a contract to supply our products to a Government Agency (in Puerto Rico, of course).

We need a payment guarantee for all our sales, and in this contract, the Government agency requires the seller to provide a Payment Bond for the 60% of the contract value. The thing is that this payment bond's beneficiary is the Puerto Rican Government Agency, not us, the manufacturer.

How can I be sure that in case the seller does not pay us, and the Government agency applies the bond, we will get paid?

I thank you in advance.

Regards,
Mauricio

[Admin]

First, I would ask you legal counsel if the payment bond guarantees payment to European companies.

Other than that, if Puerto Rico has proper standards for the bonding company requirements, you should be good to go. However, we do not write in Puerto Rico, so I don't know much about their standards or what sureties write there.

[mauricio]

Thank you very much for your response.

Regards,

Mauricio