Bonds are usually a contact between three parties that is the contractor, guarantor and the principal – with the guarantor providing the guarantee that the principal who engages the services of any contractor will be indemnified in the event of default in delivering of services as expected.
Advance Payment Bond
An advance payment is a type of payment made ahead of its normal schedule such as paying for a good or service before you actually receive it. Is sometimes required by sellers as protection against non-payment, or to cover the seller's out-of-pocket costs for supplying the service or product.
A bid bond is typically obtained through a surety agency, such as an insurance company or bank, and it helps guarantee that a contractor is financially stable and has the necessary resources to take on a project. Bid bonds are commonly required on projects that also involve performance bids and payment bonds.
They are a guarantee to CEPS acting on behalf of the republic of Ghana, that the insured will pay all duties due on imported/exported goods