David Wright Apr 6, 2010:

The client pays a certain amount in advance to the contractor. In order to ensure that the contractor does not simply take the money and run, he is required to provide a bond, often in the form of a bank guarantee, that the client can have recourse to if the contractor does not do the work, and which expires once the work has been done, unlike the bond for the warranty, which remains in effect until the end of the warranty period

Russell Phillips (asker) Apr 6, 2010:

What is the relationship between the security bond and the advance payments made to contractor?

David Wright Apr 6, 2010:

payments .. made by the client to the contractor in advance of the work being done. (can't really see the problem here, but maybe I have overlooked something)

Russell Phillips (asker) Apr 6, 2010:

The security bond serves to ensure that the work is carried out as per the contract and that the contractor fulfils their obligations in respect of the warranty. The Contractor shall provide a security bond of [xxxx] (in words: xxxx) for *Anzahlungen* and a warranty bond representing 10% of the overall order price.

What does Anzahlungen refer to here?