Abstract

A performance bond may be provided in cash (as a deposit). A deposit contract is both a real contract (characterised by the transfer of possession of a thing) and an unnamed contract (not specifically defined or regulated by the Polish Civil Code) that has a significant meaning in ordinary business dealings. In public procurement it is different - contractors tend to choose security in cash form less frequently than other forms of performance bond. This means an increase in risk for the ordering party, as the simple and secure bond is replaced by guarantees based on the obligation of a third party. If public authorities enjoyed greater flexibility in setting the terms on which the deposit is held, this would contribute to increasing the popularity of the bond.