The need to provide guarantees to secure performance can be a major obstacle when tendering for projects. Surety bonds are a written guarantee from an independent third party (the surety), which is held by the principal of a contract in lieu of a cash security deposit, bank guarantee, or personal or corporate guarantee.
The surety guarantees the contractor’s performance according to the terms and conditions of the contract, and is committed to paying the principal should the conditions not be upheld. This commitment is irrevocable and non-cancellable by the surety. In the event of a claim, the surety will seek a 100% recovery from the contractor through a deed of indemnity.
In many cases, a contractor's assets have been pledged to a financial institution. The surety can support further obligations without the need for further tangible security. This allows the contractor to free up funds, reduce debt facilities and can help you to tender for additional contracts.
We will work with you to structure your surety bonds program, leverage market capacity and manage the bond application process to ensure the bonds are issued in an efficient and timely fashion.
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