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On 23 July 2001, the PCC announced the fol-lowing supplementary provisions regarding contract bonds required under Article 30 of the Government Procurement Law:
The maximum performance bond that a con-tractor in a construction project can be re-quired to deposit, is provisionally set at 10% of the contract value. The percentage required may be reduced in consideration of the nature and scale of the works, and should be stated explicitly by the procuring agency in the in-vitation to tender.
Where a contractor provides a retention bond in the same amount as the money that is nor-mally to be retained out of advance payments and progress payments by the procuring agency and the bond provided complies with the provisions concerning advance payment bonds, then the procuring agency needs not retain any money from such payments, and monies already retained should be released without interest.
