Contract Management
Performance Guarantee Coverage
Confirms that high-value contracts hold valid performance guarantees or retention.
Why high-value contracts must hold performance security
Performance guarantees and retention protect the institution against supplier default, and their absence on a high-value contract leaves public money exposed if delivery fails, a control weakness the AGSA flags under contract management. The guarantee must also be valid for the contract's duration, not merely present at signing. AuditPro Core confirms that high-value contracts hold current performance security so the institution is not unknowingly carrying the risk of non-delivery.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Contracts Requiring Cover
162
Valid Guarantee Held
79%
▲ 4%
Expired Guarantees
21
R 44.0m exposure
No Security Lodged
13
Contracts by Security Status
Contracts With Lapsed Security
| Contract | Value (R'm) | Expired | Status |
|---|---|---|---|
| CON-4220 | 18.5 | 2026-02-01 | In delivery |
| CON-4263 | 12 | 2026-03-12 | In delivery |
| CON-4288 | 7.4 | 2026-01-20 | Snag period |
| CON-4301 | 6.1 | — | None lodged |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Purpose of performance security
A performance guarantee or retention gives the institution recourse if the supplier fails to perform, capping the financial loss from default. It is the safety net behind the contract.
Validity over the contract term
Security present at award is worthless if it expires before completion. Coverage must remain valid and sufficient throughout the delivery period, including any extension.
Risk-based application
Not every contract needs a guarantee, but value, complexity and delivery risk should drive a clear policy. High-value or high-risk contracts without security are the exposures to chase.
How AuditPro Core Bridges the Gap
- Coverage check: confirms high-value contracts carry a performance guarantee or retention per policy.
- Validity monitoring: tracks guarantee expiry against contract end dates and extensions.
- Exception workflow: escalates uncovered or lapsing high-value contracts for action.
- Traceability to source: links each contract to its guarantee instrument and value.
Key Takeaways
- Performance security is the institution's recourse against supplier default.
- A guarantee that expires mid-contract leaves the back end uncovered.
- Drive security requirements by value and delivery risk, not habit.
- Track guarantee expiry against contract and extension end dates.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.