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  Home Page > International Banking >Commercial Package >Global Engineering Express
Global Engineering Express
 

I. Description:
If your company contracts projects abroad, ICBC's "Global Engineering Express" can provide your with the full professional services like settlement, financing and in each stage of the process, including Project bidding, contracting, implementation, and acceptance.
Brief flow chart is as follows:

1. Cooperation intention phase
If your company contracts projects abroad, the tender side requires your company to provide the written guarantees from the bank. ICBC may issue bidding bonds to tender side according to your demands.

2. Contract signing phase
(1) ICBC may offer professional consultation for your company in the aspect of contract items, payment methods, period, price terms, the opening bank's certificate of credibility and other aspects, and best protect your rights.
(2) If your company is the successful tenderer, ICBC may offer compliance bond for your, guarantee tender side that your company can fulfill your obligations according to the contract.
(3) In order to protect your company's rights, we advise the tender side to prepay a proportionate pre-ordered payment as deposits and start-up capital. In order to help your company successfully get the pre-ordered payment from exporter side or owners, ICBC may establish a bond of pre-ordered payment for your, guarantee your company can deliver goods according to the items in the contract. Besides, ICBC's global express products may design the best remittances for you, which not only reduces the outside chargeback but also ensures your company with the fastest speed to receive pre-ordered payment.

3. Contract performance phase
(1) If your company adopts L/C to settlement, ICBC's Export Jieyi Express may provide your company with a series of services including technology consultation, clearing, and financing.
(2) If your company adopts O/A to settlement, ICBC's Money Express may provide your company with the supporting services like financing, risk aversion and value-preservation.
(3) If your company's project is the exportation of large-size capital, ICBC can transact export buyer's credit loan, accompanies by foreign currency financing and global express products, offer the supporting services for you like financing and instrument.

4. Contract acceptance phase
In order to let your company withdraw project balance payment sooner, ICBC may issue quality maintenance bond to exporter according to the items in contract.

II. Transaction occasion
Engineering tender, contract signing, contract performance and acceptance phases.

III. Functions and characteristics
1. ICBC provides your company with the full services of contracting projects abroad.
2. ICBC may help your company improve market competitiveness; reduce transaction risk and financial cost.

IV. Warm tips
1. Your company should be assessed credit grade by ICBC and have credit line.
2. If your company wants to transact export buyer's credit loan business, your company should notice Chinese Export Credit Insurance Company and reach the intent of cooperation in advance.

V. Cases
Company A is a large-scale telecom equipment production enterprise. In recent years, due to the gradual enlargement of production and management scale, the company has good product sales. However, the demand market is getting fuller and fuller because of the intense market competition. Company A has to change its management strategy, plan to develop potential overseas market. ICBC gets to know that Company A will take part in the tender of Country Z's large-scale telecom and cable project construction, with the tender amount of 30 million USD and the construction period is about 2 years. Therefore, ICBC suggests Company A to adopt "Global Engineering Express" service, and provides the professional services of settlement and financing in each phase of the project like contract signing, performance and acceptance.

1. Contract intention phase: according to the tender paper, ICBC issues a 1.5 million USD tender bond (with 5% of target amount) to the bidding side, guarantees Company A will not withdraw its bidding and will perform contract obligations after the bidding.
2. Contract signing phase:
After Company A's successful bidding, ICBC will take part in the contract negotiation with the tender side, offer the professional consultation, including price terms, settlement method, payment conditions, etc, help Company A sign the engineering contract with the tenderer side successfully.
The agreed payment set in the contract is like the following: the tenderer side pays 15% (4.5 million USD) engineering payment as the pre-ordered payment. It is up to ICBC to issue the bond of pre-ordered payment as a guarantee, 705 of the engineering payment will be paid periodically according to the engineer schedule. It is also up to ICBC to issue a 6 million USD's performance bond as a guarantee. The rest 15% will be paid after the initial quality check-up of the project. It is up to ICBC to issue a quality maintenance bond as a guarantee.
3. Contract performance phase:
(1) After signing the contract, ICBC will issue a 4.5 million USD's bond of pre-ordered payment and 6 million USD's performance bond to the tenderer side and bidding side respectively.
(2) After the delivery of goods, ICBC will offer Company A the package service entitled "Money and Wealth Express", and help it to receive remittance beforehand and lock exchange rate risk.
4. Contract acceptance phase:
After the initial quality check-up of the project, ICBC will issue a 4.5 million USD's quality maintenance bond to the tenderer side, and the tenderer side will pay the 4.5 million's balance project payment after it receives the bond.


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