Dear members, I work in an international trading company, and we have been involved with another trading company in construction steel negotiations for the past month. Everything from that company looks fine, legitimate, and credible. The only issue at this point is that they told us there will be no performance bond (PB) claus in the contract. They have offered us to visit their company, visit the factory's export sales office, and even the factory itself. They have answered all our inquiries and provided solid documentation to prove their credibility. When asked about that particular point, they told us that the visit is offered and we can get a clear picture of everything down there, and find out their company's and the factory's credibility down there. My quesiton is, in the steel industry, is it well known for one time shipments (25,000 or 50,000 M/T vessels) to NOT have a PB clause in them? Please help me with answers ASAP as this is the very last step in the negotiations. If so, then how do we know for sure that the factory will execute well and on time?
Dont be dumb use a 3rd party auditor worse case you get ripped off you can sue the auditors for negligence .