Legal analysis: A separate letter of guarantee refers to a kind of credit business in which the bank promises to the beneficiary in the form of a letter of guarantee at the request of the applicant, and when the guarantor designated by the applicant fails to perform the obligations or commitments agreed in the contract, the bank will perform the debts or assume the responsibilities on its behalf according to the letter of guarantee. A separate letter of guarantee is very risky for the contractor. When issuing a letter of guarantee, the bank will ask the contractor to promise that once there is a dispute with the owner, the owner has the right to ask the bank to pay the guarantee amount. Once the request is made, the bank will pay immediately without substantive examination, and the contractor will lose the right of defense.

In practice, part of the reason for the contractor to cancel the construction contract is that there is a big difference between the owner's drawings and the bidding drawings, which leads to serious construction losses. Under the above circumstances, the contractor is in a dilemma. Therefore, a separate letter of guarantee protects the rights and interests of employers. In practice, a separate letter of guarantee is now more common. As a contractor, knowing the benefits, I will naturally try to avoid this way when signing a construction contract. However, before signing the construction contract, the contractor did not have a dominant position in the negotiation, and how to safeguard his rights in practice needs more discussion and research.

Legal basis: Article 490 of the Civil Code of People's Republic of China (PRC). If the parties enter into a contract in the form of a contract, the contract shall be established when the parties sign, seal or press their fingerprints. Before signing, sealing or fingerprinting, one party has fulfilled its main obligations, and the contract is established when the other party accepts it.