Construction Guarantees
Comprehensive guarantee solutions tailored for every stage of your construction project.
Bid Bond / Letters of Intent
We can assist with non-binding letters of intent however some Employers may require tenderers to commit to their tenders by asking for Bidders to submit Bid Bonds of specified liability amount.
The Bid Bond guarantees that the Bidder/Tenderer will sign off the tender if awarded and will furnish the Employer with the required Performance Guarantee as per the tender documents.
Performance Bond / Guarantee
The most common of the Construction bonds and requirement is usually 10% of contract sum but can be higher. JBCC based contract agreements can be as high as 12.5% but the wording allows for guarantee reduction as the contract progresses.
Give the Employer the comfort they need — allow us to guarantee your performance and your fulfilment of your obligations as a contractor.
Advance Payment Bonds
Let the project owners fund the project from the start — supply them with an advance payment guarantee and get your site establishment costs, Preliminaries and General (PGs) costs covered from the onset. The employer will recoup the advanced monies from payment certificates due to the contractor and a period for the recoupment or monthly recoupment amounts must be agreed prior.
Retention / Maintenance Bond
Do not allow your funds to be locked with the Employer after project completion — provide them with a retention bond and your monies will be released and available as capital for your next project.
Materials Offsite Guarantee
Contracts may include payment terms for the Contractor for material deliveries that are made on site but are still claimable under the contract as specified in the Bill of Quantities. These materials may be off-site or even in the manufacturing process. The owner will typically make payment in accordance with such a promise, and the guarantee will be for the whole amount of the payment.
Pre-qualification Requirements
Completed Facility application form — basis of a guarantee facility agreement — contractor's general information.
Latest Audited/Signed Financial Statements plus management accounts if signed financials are older than 6 months.
Latest 3 Months Bank statements plus bank overdraft facility letter where applicable.
Company Profile, with details of current and previously completed projects.
Benefits of our Guarantees
Ability to bid on bigger projects
Unlike Bank Guarantees, Insurers do not require 100% collateral. Having a Guarantee facility allows you to free up cashflow and tender on larger projects with only affordable collateral requirements.
Deductible Collateral
Both the Guarantee and the collateral premiums are considered insurance expenses and are thus tax deductible. Collateral held is kept in an interest-bearing account, will be refunded upon successful completion, or can be used for your next project (revolving collateral kit).
Timely & Cost Effective
No need to look for another provider for your other insurance requirements. We provide a comprehensive choice of specialist insurance products at the very best available rates — always acting in the best interest of you, our clients.
Professional Advice
Insurers have vast experience in the guarantee/surety business. They only back contractors they are confident in. Getting insurance backing on your project also guarantees professional advice in the event of the unforeseeable.