EJCS also provides contract guarantee as a business accompanying the prepayment guarantee business.
When a public works contract is to be closed, the procurement authority demands certain guarantee from the contractor, such as cash deposit, bank’s guarantee and insurance company’s security, which will be forfeited if the contractor fails to complete the construction. The guarantee by EJCS is one option.
When a public works contract is not fulfilled because of the contractor’s failure, EJCS reimburses the procurement authority for a sum corresponding to the damages up to the amount assured at the beginning.
Another service by EJCS is the Reservation of Contract Guarantee, which is similar to bidding bonds. When a procurement authority requests bidders to provide guarantee for closing a public works contract, those bidders can obtain EJCS’s guarantee in the form of the “reservation of contract guarantee” and, later, a successful bidder obtains the contract guarantee from EJCS.