Calculate the performance bond
Enter your bid to see the performance bond, 9% of the approximate cost if the bid is below the limit value, and the additional bond on work increases and price adjustment. No sign-up.
Performance bond
Only the bid is required. The limit value and additional bond fields are optional.
Enter the bid, or try the sample data.
How the performance bond is calculated
The performance bond is taken before the contract is signed; while it runs, additional bonds are added for work increases and price adjustment. The rates are fixed in law and regulation.
Performance bond = bid × 6%
If bid < limit value: approximate cost × 9%
Additional bond = (work increase + price adjustment) × 6%
Each part is rounded to the kuruş on its own and the total is taken after. The half returned at provisional acceptance is rounded to the kuruş too; the rest comes back after final acceptance.
Rules applied
- 6% of the bid
- The performance bond is taken before the contract is signed, at 6% of the tender price (Public Procurement Law No. 4734, art. 43/1).
- 9% below the limit value
- If the bid is below the limit value, the bond is 9% of the approximate cost; at or above it, 6% of the bid (Works Tenders Implementing Regulation art. 56/2). The law leaves it to the Public Procurement Authority to set this rate between 6% and 15% of the approximate cost (Law No. 4734, last paragraph of art. 43).
- Additional bond
- An additional bond of 6% is taken on the price adjustment paid and on any work increase (Public Procurement Contracts Law No. 4735, art. 12; Works Standard Contract art. 10.2.1).
- Can come off payments
- The additional bond on price adjustment can also be met by deducting it from progress payments (Law No. 4735, art. 12; Standard Contract art. 10.2.1).
- Released in two steps
- Half of the performance and additional bonds comes back after provisional acceptance and the rest after final acceptance, against a social security clearance (Law No. 4735, art. 13/a; General Specification for Works art. 45).
- Bid bond of at least 3%
- The bid bond given to take part cannot be less than 3% of the bid (Public Procurement Law No. 4734, art. 33; Implementing Regulation art. 56/1).
What this tool does not calculate
It does not work out the limit value itself; you enter the one your bid is compared with. The validity the administration sets for the performance bond letter (Implementing Regulation art. 56/6), the forms a bond may take and the different rule for consultancy tenders (4734 art. 43/2) are not taken into account. For the bank cost of the letter, you enter the term.
Legal basis: Public Procurement Law No. 4734, arts. 33 and 43; Public Procurement Contracts Law No. 4735, arts. 12 and 13; Works Tenders Implementing Regulation art. 56 (as amended, Official Gazette 7.6.2014/29023); Works Standard Contract art. 10.2.1; General Specification for Works art. 45. Bank cost of the letter: Expenditure Taxes Law arts. 28 and 33, Council of Ministers Decision 98/11591; VAT Law art. 17/4-e. For information only.
About the performance bond
- Price IndicesDomestic PPI sub-indices and CPI, monthly tables since 2012.
- Price Adjustment CalculatorPrice adjustment with the official formula, from Domestic PPI and CPI.
- Progress Payment Deductions CalculatorThe cover's VAT, every deduction from a) to k) and the net amount paid to the contractor, on one sheet.
- Quantity Takeoff CalculatorRebar, concrete, formwork and excavation takeoffs: a measurement sheet with deductions, exact totals and a copy for Excel.
- Index Change CalculatorHow Domestic PPI and CPI moved since your tender month, with the In/Io ratio.
- Work Experience Update CalculatorWhat a work experience certificate counts for in the tender you enter, with the right Domestic PPI months for its kind.
- Stamp Duty CalculatorThe 9.48 per mille stamp duty on a progress payment, with the yearly cap.
- VAT Withholding CalculatorThe VAT withheld on a progress payment, at the communiqué's rate for the work type.
- Withholding Tax CalculatorWithholding tax on a multi-year construction payment, at the rate for the work type and payment month.
- Minimum Labour CalculatorThe minimum labour to declare for the SGK clearance, the shortfall and its estimated premium.
- Advance Payment CalculatorThe advance, its 30% or one-third cap, the recovery rate and what comes off each progress payment.
- Work Increase CalculatorThe work increase room left under the 20% (unit price) or 10% (lump sum) limit.
- Completion Compensation Calculator5% of the shortfall when work ends below 80%, updated to the acceptance month by Domestic PPI.
- Delay Penalty CalculatorThe delay penalty from the first contract price, daily rate and days late, with the 15% cap.
- Work Duration CalculatorCompletion date from the site handover, days late, final acceptance and payment deadlines.
- Fuel PricesEPDK monthly averages by fuel type, for the fuel coefficient of a price adjustment.
Stop tracking bonds in a spreadsheet
Additional bonds come about by themselves with price adjustment and work increases, and a bond letter nearing expiry raises a warning.