Article 118. Guarantees for the execution of works of particular value.

1. For assignments to a general contractor of any amount, and, when required by the tender notice or notice, for contracts of an amount exceeding 100 million euros, the successful tenderer presents in the form of a deposit or surety issued by the subjects referred to in article 106, paragraph 3, in place of the definitive guarantee referred to in article 117, a guarantee of the fulfillment of all the obligations of the contract and of compensation for damages resulting from any failure to fulfill the obligations themselves, called " guarantee of good performance" and a guarantee of completion of the work in cases of termination of the contract provided for by the civil code and this code, called "guarantee for resolution". 2. In the case of entrusting the works to a new entity, the latter also presents the guarantees provided for in paragraph 1. 3. The guarantee of good performance is established in the manner referred to in article 117, paragraphs 1 and 2, and is equal to a fixed 5 percent of the contractual amount as resulting from the award without application of the increases for reductions referred to in article 117, paragraph 1; remains until the date of issue of the provisional testing certificate or the certificate of regular execution, or in any case up to twelve months from the date of completion of the works resulting from the relevant certificate. 4. The surety guarantee "for resolution" operates in cases of termination of the contract provided for by the civil code and by this code and is for an amount equal to 10 percent of the contractual amount, without prejudice to the fact that, if the amount in absolute value is greater than 100 million euros, it is in any case considered limited to 100 million euros. 5. The "resolution" guarantee covers, within the limits of the damages actually suffered, the costs for the re-assignment procedures by the contracting authority and any additional cost between the contractual amount resulting from the original award of the works and the contractual amount of the re-assignment of the works themselves, to which are added the amounts of the payments already made or to be made based on the progress of the works. 6. The "resolution" guarantee is effective starting from the completion of the contract and until the date of issue of the certificate of completion of the works, when it automatically ceases. The guarantee "for resolution" automatically ceases even after three months from the date of re-assignment of the works. 7. The guarantees referred to in this article expressly provide for the waiver of the benefit of preventive enforcement of the principal debtor and the waiver of the exception referred to in to article 1957, second paragraph, of the civil code. 8. In the case of enforcement, payment is made within thirty days, upon simple written request from the contracting authority; the request bears the indication of the title for which the contracting authority requests enforcement. 9. The standard policy schemes concerning the surety guarantees of paragraph 1 are adopted in the manner referred to in article 117, paragraph 12. Yes the second and third periods of the same paragraph also apply. EFFECTIVE: July 1, 2023