5.1 The face amount of a bid or contract support letter of credit for all types of contract is to be determined by the contracting authority, taking into account pertinent factors, such as the inherent risks of the contract and the custom generally accepted in the particular profession or trade involved.
5.2 The face amount of a contract support letter of credit may be increased or reduced commensurate with the change in risk that has occurred. The face amount may be changed by an amendment to the letter of credit. Alternatively, the letter of credit may contain an express provision for change by a specified or determinable amount or amounts on a specified date or dates or upon presentation of the document(s) specified for this purpose such as an interim certificate of completion.
5.3 Any letter of credit received by the Crown must have an appropriate expiry date. The letter of credit should not have its expiry coincide with the projected cessation of the risk which it covers: for instance, the expiry date stated in the letter of credit should not be the same date as that which is projected for the award of the contract or the completion of the work. Rather, the expiry date should allow for a comfortable turn-around time from the estimated date of award of contract or completion of the work, to ensure that the contracting authority is satisfied that the bidder or contractor has discharged its obligations for which the letter of credit was provided. If the contractor has not met its obligations, the contracting authority must have sufficient time to prepare and present the required demand for payment under the letter of credit.