Four types of Contract Guarantees and What They Insure
Contract Guarantees in the construction, engineering, manufacturing and mining service industries are almost mandatory. Our range of Construction Guarantees are as varied as your requirements. Here’s a short list of the four types of Contract Guarantees and what they insure:
A performance guarantee provides a guarantee that Contractors will adhere to the terms of their Contract, such as completing the project on time and within budget.
A bid bond provides a guarantee that if you bid on a project and are awarded the Contract, you’ll honour the terms of your bid and sign all the Contracts related to the project.
An advance payment guarantee is a guarantee to your Subcontractors and suppliers that you will pay them for services and materials they provide to you for the duration of the project.
This guarantee protects Subcontractors from cash-strapped Contractors who allocate all their funds to honouring their building Contract, while failing to pay their Subcontractors and suppliers.
A retention guarantee is a guarantee to replace the retention fund (usually held by the Employer) which is used to fix defects during the final completion of a Contract. This guarantee lets the Contactor free up retention funds whilst giving the Employer security to pay for defects should the Contractor not complete the project properly.
How to Apply for Contract Guarantees
If you need any of these Contract Guarantees, we can help, just complete this form to get started.
THE LEGAL STUFF
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