Provisional Guarantee

NORMATIVE REFERENCE
Art. 93 (Guarantees for Participation in the Procedure)

The “Provisional Guarantee,” unless otherwise specified in paragraphs 1 and 10 of Article 93, is required by the Client (Contracting Authority) from any company intending to participate in a public procurement procedure.

The guarantee covers the failure to sign the contract after the award, due to any event attributable to the awarded contractor or the adoption of an anti-mafia prohibition against them.

The guarantee is released:

For the awarded contractor, automatically upon signing the contract;
For non-awarded contractors, through timely communication of release from the contracting authority, and in any case within 30 days from the award, even before the expiration of the guarantee's validity.
Unless otherwise specified in paragraph 8 of Article 93, the guarantee must be accompanied, under penalty of exclusion from the tender, by the commitment of a guarantor, even different from the one who issued the provisional guarantee, to issue the definitive guarantee, should the bidder be awarded the contract.
Paragraph 8 of Article 93 provides an exemption from this obligation for microenterprises, small and medium-sized enterprises, and temporary groups or ordinary consortia formed by the same companies.

Definition of Enterprises in the Public Contracts Code:

Medium-Sized Enterprises: Companies with fewer than 250 employees and an annual turnover not exceeding €50 million, or an annual balance sheet total not exceeding €43 million.
Small Enterprises: Companies with fewer than 50 employees and an annual turnover or an annual balance sheet total not exceeding €10 million.
Microenterprises: Companies with fewer than 10 employees and an annual turnover or an annual balance sheet total not exceeding €2 million.

SCOPE OF THE PROVISIONAL GUARANTEE
The provisional guarantee must be valid for at least 180 days from the date of submission of the offer, which coincides with the last day for submitting the required documents for participation.
The notice or invitation may also provide for a shorter or longer validity period, with the possible obligation for the guarantor to renew the guarantee until the conclusion of the awarding process.

Type
Contract Guarantees.

Group
Public Contracts.

Legal References
Legislative Decree 18.04.2016 No. 50 “Code of Public Contracts” Art. 93
Legislative Decree 19.04.2017 No. 56 “Supplementary and Corrective Provisions to Legislative Decree 18 April 2016 No. 50.”
Usual Contractor
Anyone intending to participate in a public procurement procedure.

Usual Beneficiary
Public Entities.

Duration
Valid for at least 180 days from the date of submission of the offer.

Extensions
No.

Particular Clauses
Payment within 15 days upon simple request;
Waiver of the defense of prior recourse against the principal debtor, pursuant to Article 1944 of the Civil Code;
Exemption from the second paragraph of Article 1957 of the Civil Code;
Commitment to renew the guarantee upon request from the contracting authority.
Specific Documentation to Acquire
Complete invitation letter or procurement notice, including the tender specifications.