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Update on procedures for write down of advance guarantees

17.11.2014  09:01

Lately, Danida Business Contracts have received an increasing number of requests from companies for write down of their advance guarantees on ad hoc basis. However, only requests for write down of audited invoices can be accommodated. Thus, we kindly refer to the wording of the guarantee where it is stated that:

“This Guarantee shall be reduced in connection with the fourth quarterly invoice by the total of the amounts of the Advance Payments repaid during the calendar year by the Consultant in accordance with the Agreement, provided that such reduction shall take place upon written request of the Consultant to the Client, and subsequent confirmation to us of the amount of the reduction by the Client”

In the Contract’s Appendix 3, clause 3.2, it is further stated that the fourth quarterly invoice shall be accompanied by “An annual audited statement of accounts for the calendar year audited by the Consultant's external chartered or registered auditor”. As such, the write down of guarantees can only be accommodated in connection with the annual audit of the contract and only for the audited period.


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Kind regards,

Danida Business contracts