Subsection 2: First demand guarantee and personal and joint surety

The holder of the contract may, throughout the term of the contract, substitute for the retention of guarantee a first demand guarantee or, if the purchaser does not object, a personal and joint guarantee.The purpose of this substitution guarantee is identical to that of the retention of guarantee which it replaces.

The substitution guarantee shall be drawn up in accordance with a model set by an order of the Minister for the Economy appended to this Code.

The substitute guarantee is constituted for the total amount of the contract, including modifications during performance.The amount of the substitute guarantee may not exceed that of the retention guarantee which it replaces.

Where the contract holder is a joint and several grouping, the substitution guarantee is provided by the authorised representative for the total amount of the contract.Where the contract holder is a joint and several grouping, each member of the grouping provides a substitution guarantee corresponding to the services entrusted to it. If the leader of the joint grouping is jointly and severally liable with each of the members of the…

In the event that the substitute guarantee is not set up or completed at the latest on the date on which the contractor submits the request for payment corresponding to the first instalment, the fraction of the retention guarantee corresponding to the instalment shall be deducted by the purchaser.When the substitute guarantee has been set up after the date fixed in the first paragraph, the amounts already deducted by way…

The body providing the guarantee shall be chosen from among the third parties approved by the Autorité de contrôle prudentiel et de résolution. Where this body is foreign, it shall be chosen from among the third parties approved in its country of origin.The purchaser may object to the body providing the guarantee.

The institutions which have granted their guarantee or their guarantee on first demand shall be released from their commitments no later than one month after the expiry of the guarantee period.However, if reservations have been notified during the guarantee period to the contractor and to the institutions which have granted their guarantee or their guarantee on first demand and if they have not been lifted before the expiry of this…