Regulations for Bid Bond, Guarantee Bond and Other Guarantees Article 22

An entity shall, upon considering the characteristics and actual needs of the subject procurement, prescribe in the tender documentation that the refund bond for advance payment may either be reduced progressively, pro rata to the progress or the contract value of the part that has been performed by the supplier, or released in whole upon satisfactory inspection and acceptance.Where a supplier fails to perform as required by the contract, or that the contract is terminated or rescinded, an entity may, at any time, demand that the supplier repay the remaining portion of the refund bond for advance payment plus interest, or that such amount be set off against the amount payable to the supplier.The calculation of the interest referred to in the preceding paragraph, and the circumstances under which the entity may demand for refund, shall be prescribed explicitly in the tender documentation, and the same shall also be stated in the refund bond for advance payment.