The objective of this type of guarantee is to secure the funds, paid by the beneficiary (Government organizations and institutions, corporations, Companies etc.) to the contractor, before start of the job, or in the process of the job, to strengthen the financial position of the contractor for speeding up the progress of work. The beneficiary will take steps to re-collect the funds paid by encashing the guarantee, in case of the contractor’s failure to meet his commitments. These guarantees are issued by the Bank, in favor of the beneficiary, at the request of the contractor. These are required for a fixed percentage of the total amount of the contract that the beneficiary is expected to pay to the contractor in the form of advance payments. The funds paid, by the beneficiary to the contractor, are deducted from the job position reports at various stages in such a manner that before the last temporary job position report is filled in, the said amount should have been amortized.