The performance bond in Belgian public procurement
In Belgium, the performance bond is the financial security the contractor lodges for proper performance of the contract: in principle 5% of the contract value, within thirty days of its conclusion (royal decree of 14 January 2013, art. 25 and 27). The buyer may not require one below €50,000 awarded; it is released at acceptance.
Updated
In Belgium, the performance bond (cautionnement, borgtocht) is the financial security the contractor lodges for performance: in principle 5% of the contract value, within thirty days of conclusion. The buyer may not require one below €50,000 awarded.
What the performance bond is
Article 2, 8°, of the royal decree of 14 January 2013 laying down the general rules for the performance of public contracts defines the bond (cautionnement in French, borgtocht in Dutch) as the financial guarantee the contractor gives for its obligations until the complete and proper performance of the contract. Consolidated French text read on Wallex on 30 October 2026: Royal decree of 14 January 2013, consolidated French text (Wallex)
The bond belongs to the performance of the contract, not to the tender: the chosen company lodges it after the contract is concluded. Article 25, § 7, states that articles 26 to 33 apply only where a bond is lodged under article 25.
The decree of 14 January 2013 does not apply to contracts whose estimated amount does not reach 30,000 euros, except what the procurement documents make applicable (articles 5 and 6, § 5). The law behind these rules is set out here: Guide to the law of 17 June 2016
How much: the rule and its exceptions
The table follows article 25, as replaced by the royal decree of 4 September 2023, read on Wallex on 30 October 2026. The specification of each contract says which rate applies.
| Case | Rule | Article |
|---|---|---|
| Ordinary contract | 5% of the contract value, unless the procurement documents set a lower rate or no bond | Royal decree 14 January 2013, art. 25, § 1 |
| Supplies or services without a total price | The estimated monthly amount times six, then times the rate, unless the documents say otherwise | Art. 25, § 2 |
| Framework agreement | Per contract based on the framework agreement; with a single contractor, the buyer may set a global bond of 3% of the estimated amount, or less | Art. 25, § 3 |
| Contract in tranches | Per tranche to be performed | Art. 25, § 4 |
| Rounding | Up to the next ten euros | Art. 25, § 5 |
| Award amount below €50,000 | No bond may be required, contract or framework agreement | Art. 25, § 6 |
How and when to lodge it
Article 26 accepts four forms: in cash, in public funds, as a collective bond, or through a guarantee from a credit institution or from an insurance company approved for class 15 (suretyship). The guarantor may not add conditions other than those of the decree or the procurement documents.
Article 27 sets the period: thirty days after the day the contract is concluded, unless a longer period is set. The period is suspended while the company is closed for paid annual holidays and regulatory compensatory rest days. Cash is paid to the Deposit and Consignment Office (Caisse des Dépôts et Consignations) or a similar public body; a bank or insurance guarantee is given by a deed of commitment.
Proof goes to the buyer: deposit receipt, debit notice, acknowledgement of deposit or original deed. These documents state in whose favour the bond is lodged, the subject and reference of the contract, and the contractor’s details.
No bond in time, or a bond that no longer fits
Article 29 says a contractor that does not lodge the bond in time receives formal notice by registered or dated electronic mail. If it still has not done so within a last period of fifteen days, the buyer may either constitute it ex officio by deduction from the sums due, with a penalty of two per cent of the initial contract amount, or apply a remedial measure.
Article 28 adds that the bond is topped up or adjusted when it no longer fits, notably after deductions, extra services or changes that raise or lower the initial contract amount by more than twenty per cent.
If the contract is renewed, the bond of the initial contract passes by law to the renewed contract, unless the documents say otherwise (article 32).
What the buyer may deduct
Article 30 allows the buyer to deduct ex officio from the bond the sums owed to it, notably when the contractor is in default within the meaning of article 44. The deduction follows article 44, § 2: an official report is sent to the contractor, which may put forward its defence within fifteen days.
On unilateral termination, the remedial measure of article 47, § 2, 1°, the whole bond goes to the buyer by law as fixed damages. When a third party lodges the bond, it is a joint and several guarantor (article 31).
The bond does not change the subcontracting rule: the contractor stays solely liable to the buyer. That is explained here: Subcontracting
Release at acceptance
Under article 33, when the buyer grants provisional or final acceptance, the bond is released, by half or in full, even without a request from the contractor. The buyer gives the release within fifteen days of acceptance. After that, the contractor is entitled to interest, or to repayment of the cost of keeping a bank or insurance guarantee or a collective bond.
- Works with two acceptances: half after provisional acceptance of the whole contract, half after final acceptance, sums due deducted (article 93).
- Supplies: in one go after provisional acceptance of the whole, unless the documents say otherwise (article 133).
- Services: in one go after acceptance of all the services, unless the documents say otherwise (article 158).
- Rental, hire-purchase or leasing: according to the cases in article 144.
What an SME checks before replying
These points follow from the articles cited. They do not replace reading the specification of the contract concerned.
- Read the bond clause of the specification: rate, any waiver, longer period. What a specification contains: Tender specification
- Compare the likely contract amount with €50,000: below it, no bond may be required. Below €30,000 excluding VAT, it is a low-value contract: Low-value contract The other thresholds: Thresholds 2026-2027
- Prepare the form of the bond before conclusion: a bank or insurance guarantee takes a step with an approved institution.
- Note the thirty-day period from conclusion of the contract, and the last fifteen-day period after formal notice.
- For a framework agreement, check whether the buyer sets a bond per contract or a global bond: Framework agreement
- At acceptance, check that the release is given within fifteen days.
What AOEX does and does not do
AOEX reads TED notices and public e-Procurement notices. When a published contract is open, the tender kit reads the published documents, including the bond clause, and dictates the fields of the reply: Tender kit The term is also in the glossary: Glossary
AOEX lodges no bond, does not submit the tender, does not contact the buyer and does not say who will be chosen. This page is not legal advice. The text to follow remains the royal decree and the procurement documents.
Frequently asked questions
How much is the performance bond in a Belgian public contract?
Article 25, § 1, of the royal decree of 14 January 2013 sets it at five per cent of the contract value. The buyer may set a lower rate or no bond at all, provided it says so in the procurement documents. French text read on Wallex on 30 October 2026.
Can a performance bond be required for a small contract?
Not below €50,000. Article 25, § 6, says the buyer may not require a bond for public contracts and framework agreements whose award amount is below 50,000 euros. A low-value contract, below €30,000 excluding VAT, therefore carries no enforceable bond either.
Within what period must the bond be lodged?
Within thirty days after the day the contract is concluded, unless the procurement documents set a longer period (article 27, § 1). The period is suspended while the company is closed for paid annual holidays and regulatory compensatory rest days.
In what form is the bond lodged?
Article 26 provides four: in cash, in public funds, as a collective bond, or through a guarantee from a credit institution or from an insurance company approved for class 15 (suretyship). The contractor or a third party may lodge it (article 27, § 2).
When is the bond released?
At acceptance. For works with two acceptances, half is released after provisional acceptance and half after final acceptance (article 93). For supplies, unless the documents say otherwise, in one go after provisional acceptance (article 133); for services, in one go after acceptance of all the services (article 158).
Does AOEX lodge the bond?
No. AOEX reads TED notices and public e-Procurement notices and helps read the published documents, including the bond clause of the specification. AOEX lodges no guarantee, does not submit tenders and does not give legal advice.
Sources
Royal decree of 14 January 2013 laying down the general rules for the performance of public contracts, article 2, 8°, articles 5, 6, § 5, 25 to 33/1, 44, 47, 93, 133, 144 and 158, consolidated French text read on Wallex on 30 October 2026 (article 25 replaced by the royal decree of 4 September 2023): Royal decree of 14 January 2013, consolidated French text (Wallex) Justel, in French: Royal decree of 14 January 2013 (Justel, French)
The Performance bond, Provisional and final acceptance, and Remedial measures entries of the AOEX glossary, read on Wallex on 28 October 2026, say the same: Glossary
This note describes public documents and how AOEX works. It is not legal advice.
Edited by aoex.
