Comparative Study of Construction Project Letters of Guarantee in P. R. China and the United States
LI Qing zhi,WANG Yao wu and ZHANG Rui min
DOI:10.11835/j.issn.1674-4764.2008.05.018
Received ,Revised , Accepted , Available online July 01, 2015
Volume ,2008,Pages 86-89
- Abstract
A construction project letter of guarantee is used as financial credit to insure the smooth project execution. The construction project letter of guarantee system developed over one hundred years in the United States where a comprehensive system has been established. It is proven that the system played a vital role in controlling construction industry risk in the U.S. In contrast, the system developed later in P. R. China but has played an increasing role in the Chinese construction industry. Based on a discussion of the structure, meaning and condition of the letter of guarantee system in the U.S., a suitable framework is sought to promote development of the letter of guarantee system in the Chinese construction industry.