Advance payment Guarantee (reducing)
Posted: Wed Mar 14, 2012 9:16 pm
I have a very good case happening to me.
We issued advance payment guarantee amounting USD 1,000,000/-, the amount will reduce each time until it reaches zero.
Now the contractor called me saying that the amount of the guaranatee must reduce by USD 200,000, he requested to reduce the liability from our side.
I said ok no problem, but I need a letter from the beneficiary signed and stamped confirming that part of the project has finished which is amounting usd 200,000.
My question is, the beneficiary is not our client and I cant verify their signature on the reduction letter, contractor may make-up a forged letter which is easy nowadays, what are the best practices in banks nowadays to verify signature under the above scenario?
Thanks.
We issued advance payment guarantee amounting USD 1,000,000/-, the amount will reduce each time until it reaches zero.
Now the contractor called me saying that the amount of the guaranatee must reduce by USD 200,000, he requested to reduce the liability from our side.
I said ok no problem, but I need a letter from the beneficiary signed and stamped confirming that part of the project has finished which is amounting usd 200,000.
My question is, the beneficiary is not our client and I cant verify their signature on the reduction letter, contractor may make-up a forged letter which is easy nowadays, what are the best practices in banks nowadays to verify signature under the above scenario?
Thanks.