The contractor must first provide a guarantee. The guarantee is a financial guarantee that the contractor makes available to the contracting authority as a guarantee for the complete and proper execution of the assignment.
Bail Local Government Flanders
In principle, a guarantee must be provided for each public contract. No bail is required for the following assignments:
- Assignments that fall outside the scope of the Implementation RD (see articles 5 and 6 Implementation RD);
- Assignments with an amount of less than 50,000 euros;
- Contracts for deliveries and services for which the execution period does not exceed 45 days;
- Orders for the following services:
- legal services, insofar as they were not already excluded from the scope of the public procurement legislation pursuant to Article 28 of the Act.
- contracts for education services, in particular services with CPV codes from 80100000-5 up to and including 80660000-8, with the exception of codes 80533000-9, 80533100-0 and 80533200-1.
- the contracts for insurance services.
- IT services and related services, in particular services with CPV codes from 50310000-1 to 50324200-4, services with CPV codes from 72000000-5 to 72920000-5, with the exception of code 72318000-7 and the codes from 72700000-7 up to and including 72720000-3, as well as services with CPV code 9342410-4.
- Research and development services, in particular services with CPV codes from 73000000-2 to 73436000-7, with the exception of services with CPV codes 73200000-4, 73210000-7 and 73220000-0.
In the aforementioned cases, the contracting authority can still request a guarantee insofar as this is stipulated in the contract documents.
The amount of the guarantee is set at 5% of the original order amount (excluding VAT).
The contractor has 30 calendar days following the day on which the contract is concluded to provide the guarantee, unless the contract documents provide for a longer period. If the contractor does not provide the guarantee within this period, the contractor will remain in default and action must be taken in accordance with Article 29 of the Implementation Act.
During the execution of the assignment it can happen that the bail is no longer adjusted. This can either be due to changes in the contract sum (changes during the execution in both more and less) or through a change in the amount of the deposit (deductions due to defaulting contractor). The guarantee can be adjusted during the course of the implementation if the original amount of the assignment has increased or decreased by more than 20%.
The bail will be released after the execution of the assignment. In the case of two works deliveries, the bail will be released in two times, half on the provisional acceptance, the other half on the final acceptance. If only one delivery is foreseen, the release takes place in one go. For deliveries, the bail can be released at once after the provisional delivery of the joint deliveries. With services, the bail can be released at once after the completion of the joint services.
The request from the contractor to proceed with the delivery will from now on be regarded as a request for release of the guarantee, both for the provisional and final delivery. The contractor must therefore not submit a separate formal request for release of the guarantee.
The contracting authority has a right to deduct any contribution due, even without the contractor having to be inadequate.