Research On Construction Contract Performance Guarantee Latter And Its Claim

In economically advanced country, construction guarantee especially the entrepreneur's performance guarantee is a sort of venture management tool widely applied in construction region's contract activity. In the early 1980s, our country introduced construction performance guarantee which is one of the international convention when utilizing World Bank loan to proceed constructing. The performance guarantee letter as the main mode of performance guarantee could protect the owner to achieve debt, guarantee the performance of construction contract effectively and promote the healthy and orderly development of Chinese construction market. According to the current practice of performance guarantee letter, there is not enough understanding of the claim for performance guarantee letter in our country, even if the owner have the concept of performance guarantee letter claim. However, due to the provisions of the normative documents for the performance guarantee claim is not very detailed, in the process of performance guarantee claims will produce a lot of disputes.Study on construction contract performance guarantee letter and its claim operation could not only minimize the disputes in the claim process for owner, contractor and guarantor, but also guarantee construction completed timely and with high quality.First of all, this paper introduce the performance guarantee system and its conduction comprehensively based on seller guarantee system, introduce the unconditional performance guarantee letter and conditional performance guarantee letter,and analyze the claim of performance guarantee——security deposit use excessive, the performance guarantee letter is not unified, performance guarantee claim with difficulty.Next,this paper analyze performance guarantee letter claim' mechanism, feature and elements.Compare performance guarantee letter claim with construction contract claim,it is concluded that performance guarantee letter claim can handle the fundamental breach,construction contract claim can handle the non- fundamental breach.After that, the paper depending on the type of performance guarantee letter, respectively analyze the claim principle,the claim procedure and guarantor contradiction for the owner's inappropriate claim of unconditional performance guarantee letter and conditional performance guarantee letter.Lastly, this paper put forward proposals for correlate relevant documents and contractor, supervisor, owner and guarantor.