<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The performance guarantee represents the contractor's liability to ensure the beneficiary on the fulfillment of the quality conditions for the contracted works, as well as of their execution within the agreed contractual term. In the context of a growth trend in the industrial construction market since 2018, we considered it appropriate to study the impact of the performance guarantees on the financial balance of the contractors operating on this market. Through this research we aim to analyze the methods of guaranteeing the construction works, to assess the financial, accounting and fiscal issues of a construction company as a general contractor, to identify potential risks and to find solutions to avoid them.</p></abstract>

The performance guarantee represents the contractor's liability to ensure the beneficiary on the fulfillment of the quality conditions for the contracted works, as well as of their execution within the agreed contractual term. In the context of a growth trend in the industrial construction market since 2018, we considered it appropriate to study the impact of the performance guarantees on the financial balance of the contractors operating on this market. Through this research we aim to analyze the methods of guaranteeing the construction works, to assess the financial, accounting and fiscal issues of a construction company as a general contractor, to identify potential risks and to find solutions to avoid them.

Accounting and Fiscal Considerations upon Performance Guarantees - Particular Case of Construction Works

Studia Universitatis „Vasile Goldis” Arad – Economics Series

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The performance guarantee represents the contractor's liability to ensure the beneficiary on the fulfillment of the quality conditions for the contracted...

Accounting and Fiscal Considerations upon Performance Guarantees - Particular Case of Construction Works

Published Online: Dec 06, 2018

Page range: 81 - 96

Received: Jun 01, 2018

Accepted: Sep 01, 2018

DOI: https://doi.org/10.2478/sues-2018-0022

Keywords
guarantee, performance, provisions, construction

© 2018 Dorel Mateș, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Accounting and Fiscal Considerations upon Performance Guarantees - Particular Case of Construction Works

Published Online: Dec 06, 2018

Page range: 81 - 96

Received: Jun 01, 2018

Accepted: Sep 01, 2018

DOI: https://doi.org/10.2478/sues-2018-0022

Keywordsguarantee, performance, provisions, construction

© 2018 Dorel Mateș, et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
guarantee, performance, provisions, construction