Does UNDP require performance guarantee?
UNDP may require a successful contractor to furnish performance bonds in the standard format or similar forms of guarantee. The amount of performance bonds/guarantees will vary depending on the nature of the requirements. For example, in case of construction contracts, UNDP calls for performance bonds and labor and material bonds in sums equal to the total contract price. The United Nations may also include a liquidated damages clause in its contractual documents in case adherence to the schedule of delivery of goods or performance of contractual services is critical to meet the requirements of the UNDP.
