Starting January 1, 2026, companies registered on the “White List” and participating in state procurement will be required to submit a bank guarantee covering 60% of any advance payment under a contract. The regulation, adopted by the Chairman of the State Procurement Agency, updates the Rules and Conditions for the White List.
Under the new rules, the guarantee requirements will increase gradually:
- 2026 – 60% of the advance payment
- 2027 – 70%
- 2028 – 80%
- 2029 – a new model will be implemented, setting the criteria and preferences of the White List
For example, if a state agency issues an advance payment of 2 million GEL for a 10-million GEL contract, the company will need to provide a 1.2 million GEL irrevocable bank guarantee starting next year.
The reform aims to reduce financial risks associated with advance payments and ensure high-quality contract performance.
“Paying an unsecured advance payment carries a certain risk if a company fails to fulfill its obligations. That is why we decided to gradually increase the guarantee amount. This process will not affect existing contracts and ensures a fair transition to the new model,” said Minister of Infrastructure Revaz Sokhadze.
Sokhadze noted that the approach will encourage companies to improve financial stability and quality standards.
“This is an opportunity for businesses to strengthen their company. But there can be no compromise on either quality or deadlines,” he added.
In addition to increasing guarantees, the ministry is working on a new pricing system based on market value principles for state procurement. The reform is expected to promote fair competition in the construction sector.
The new regulations will apply only to companies participating in state procurement after registering on the White List.
