Bonds and guarantees will usually be required in any major construction project and they are a requirement within FIDIC standard forms.  An on-demand bond is a security that unconditionally requires a Bank or other surety to pay to the beneficiary a sum of money once a demand has been made and, on occasion, on the presentation of certain documents.  This can be contrasted with a normal guarantee which will usually require the beneficiary to prove a liability against the obligor/debtor who has the benefit of the guarantee.  These normal types of guarantees are commonly referred to as “see to it” guarantees.[1]