ICC's URDG balance the interests of different parties and provide safeguards against abuse in the calling of guarantees. This 2010 revision is a new set of rules for the twenty-first century and will help secure uniform practice worldwide.
The User's Handbook to the URDG sets out the procedures involved in the issue, presentation and demand for payment of demand guarantees and counter guarnatees under the URDG. The Handbook contains a detailed explanation of the relevant rules, the reasons for them and the way they are to be interpreted and applied. It answers the key questions on how to use the rules.
There are three major types of contract guarantees – tender bonds, performance guarantees and repayment guarantees – and each of the three parties involved has a different interest.
The ICC Uniform Rules for Contract Guarantees aim to achieve a fair balance between the legitimate interests of all three parties.