This research is to find out how the implementation of the Bengkulu City Public Works and Spatial Planning Service towards the Bank Guarantee in the event of a default from the service provider and legal protection for the parties in the construction contract in the event of a default the bank guarantee does not fulfill its obligations. This type of re-search is empirical research using qualitative methods. Data was collected by means of interviews and literature study of secondary data. The results of this study indicate: (1). That the Implementation of the Bengkulu City Public Works and Spatial Planning Ser-vice has the right to make a guarantee disbursement due to a default by the service provider. (2). Legal Protection for Service Providers if the bank does not disburse the guar-antee, the service provider can file a lawsuit against the bank for unlawful acts. The pro-vider also suffers a loss because the Service Provider who is in default still compensates for the loss to the Service User.
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