Training Course: Certificate for Specialists in Demand Guarantees

Introduction

In today’s competitive global markets, demand guarantees have become critical financial instruments in sectors like international trade, construction, and large-scale infrastructure projects.
The Certificate for Specialists in Demand Guarantees course provides in-depth training on the legal, operational, and practical aspects of demand guarantees, equipping professionals with the expertise needed to navigate complex transactions confidently.
Covering international standards such as URDG 758 and ISP98, this course ensures participants understand the structures, obligations, and risk management techniques essential for demand guarantees.
Whether you are in banking, project management, trade finance, or legal advisory roles, this course empowers you to elevate your capabilities and protect your organization’s interests effectively.

Course Objectives

By the end of this course, participants will be able to:

• Understand the purpose, structure, and types of demand guarantees.
• Identify the roles and obligations of parties involved in demand guarantees.
• Apply the international rules, including URDG 758 and ISP98, in real-world scenarios.
• Draft, review, and assess the language and terms used in demand guarantees.
• Evaluate and mitigate risks associated with demand guarantees in diverse sectors.

Course Outlines

Day 1: Fundamentals of Demand Guarantees

• Definition and purpose of demand guarantees.
• Types of guarantees: bid, performance, advance payment, and more.
• Legal nature versus documentary nature.
• Comparison with standby letters of credit.
• Key parties and relationships in demand guarantees.

Day 2: International Rules Governing Demand Guarantees

• History and practical application of URDG 758.
• Comparison between URDG 758 and ISP98.
• The role of the ICC and uniform practices in global trade.
• Local legal considerations in cross-border transactions.
• Enforceability of demand guarantees internationally.

Day 3: Parties Involved and Their Responsibilities

• Roles of the principal, beneficiary, guarantor, and instructing party.
• Intermediary banks and their essential functions.
• Obligations under demand guarantees for all parties.
• Protocols for effective communication and notifications.
• Case studies: resolving party disputes in demand guarantees.

Day 4: Drafting and Structuring Demand Guarantees

• Key clauses in demand guarantee instruments.
• Avoiding ambiguities in language and structure.
• Language, legal, and format requirements for compliance.
• Using templates and model forms to standardize processes.
• Common drafting pitfalls and how to avoid them.

Day 5: Risk Analysis and Mitigation

• Identifying risks in issuing demand guarantees.
• Fraud, abuse, and how to manage these risks.
• Mitigation strategies for banks and beneficiaries.
• The role of counter-guarantees in risk management.
• Real-world scenarios of risk analysis and mitigation.

Day 6: Claims and Payments Under Demand Guarantees

• Conditions for valid claims under demand guarantees.
• Documentation requirements for claims.
• Timelines for payment and rejection processes.
• Expiry dates and the use of extend-or-pay clauses.
• Legal precedents and case studies on claims.

Day 7: Problematic Scenarios and Dispute Resolution

• Handling wrongful demands and legitimate rejection.
• Legal remedies and injunctions.
• Arbitration versus litigation for demand guarantees.
• Force majeure and its effect on guarantees.
• Reviewing case law to identify best practices.

Day 8: Operational Aspects and Compliance

• Lifecycle of demand guarantees: issuance to expiry.
• Record-keeping and audit requirements.
• AML, KYC, and sanctions compliance in global markets.
• Use of SWIFT messaging in managing demand guarantees.
• Automation and technology for efficient operations.

Day 9: Industry Applications and Best Practices

• Use of demand guarantees in construction projects.
• Applications in trade finance and government contracts.
• Relevance in oil, gas, and infrastructure projects.
• Industry best practices for demand guarantees.
• Insights from leading institutions on successful implementation.

Day 10: Workshop, Case Study, and Assessment

• Interactive analysis of real-world scenarios.
• Group exercise: drafting a complete demand guarantee.
• Quiz and individual knowledge assessment.
• Review of key learning points.
• Awarding of certificates and closing remarks.

Why Attend this Course: Wins & Losses!

• Master the art of drafting, reviewing, and managing demand guarantees.
• Gain advanced expertise in applying URDG 758 and ISP98.
• Build confidence in assessing risks and navigating disputes.
• Learn to manage complex transactions with precision.
• Strengthen your ability to use digital compliance tools like SWIFT messaging.
• Expand your professional network and share insights with global peers.
• Boost your credibility and leadership profile in your organization.

Conclusion

Demand guarantees are powerful instruments that protect contractual obligations and build trust in international and domestic markets.
This course empowers you with the legal, operational, and practical skills to manage demand guarantees with confidence and professionalism.
By applying international best practices and leveraging digital tools, you will become a trusted expert in navigating complex demand guarantee scenarios.

Enroll today and take the first step toward securing your role as a leader in risk mitigation and demand guarantees excellence.