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Get your Letter of Intent almost instantly

by | Sep 5, 2018 | Guarantees, Tenders | 0 comments

Did you know that we can arrange your Letter of Intent within 2 hours?

What is a Letter of Intent?

A Letter of Intent basically documents your willingness to enter into a contract at a future date. It buys you time and allows you to mobilise work on your construction project before having the necessary Guarantees in place.

Letter of Intent

After supplying you with a Letter of Intent, we can issue a quote for your Guarantee within 24 – 48 hours, provided you send us all the required information, and your actual Guarantee can be ready within 72 hours*.

We provide Advance Payment, Performance, Tender, Construction and Retention Guarantees to clients across South Africa at highly competitive rates.

The insurers we deal with are all accredited with most major employers in South Africa including all municipalities, ESKOM Ltd, Transnet SOC Ltd and other major blue-chip corporations.

Our advisers are experts at identifying your insurance needs and protecting your business from risk.  Just complete this short form and we’ll contact you to arrange your free Letter of Intent.

*Subject to approval by the Insurer.

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How do you get a Performance Guarantee?

When applying to get a Performance Guarantee, you’ll have to answer basic questions about your professional work experience and your company’s financial history. If your business has more than one owner, the financial credentials of all owners must be submitted.

What is Construction Bidding?

Construction bidding is the process of submitting a proposal/tender to build or manage a construction project. Public tenders, or those with a government department, follow different rules than private tenders. They must be advertised in advance, and they allow any qualified contractors to bid if they choose to. Private owners may opt to limit the construction bidding process to contractors they have chosen as bidders.

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.

How the tender process works

Landing a tender and the tender process can be a time-consuming and costly exercise, especially if you don’t understand the tender process, or you don’t adhere to the necessary requirements.

A bid in the tender process is issued by a private company or government department when they need to obtain specific goods or skills. The advertised bid is a Request for Quotations (RFQ) in the tender process.

When is a Performance Guarantee called on?

Building Contractors often ask us the question: When is a Performance Guarantee called on? When your company starts bidding on projects for cities, provinces or municipalities, you’ll be expected to provide assurance that you can meet the obligations detailed in the Contract.

This assurance comes in the form of a Performance Guarantee. Basically, what happens is that a surety company (an insurer or bank), for a certain fee, steps in and guarantees your performance. Surety companies don’t work directly with Contractors. Instead, they partner with brokerages like us.

What’s the difference between a Performance Bond and a Performance Guarantee?

The term Performance Bond is often misleading, which can leave contractors confused about the difference between a performance bond and a performance guarantee. Most construction Performance Bonds are actually Guarantees. Bonds and Guarantees are related but are different. The right to claim under a Guarantee is linked to non-performance of the underlying contract. Under a Bond, the bank usually pays on demand regardless of the underlying contract.

Get your Letter of Intent almost instantly

The term ‘Letter of Intent’ (LOI) is typically used to describe a letter from an Employer to a Contractor (or from a main Contractor to a Subcontractor) indicating the Employer’s intention to enter into a formal written contract for Works described in the letter, and asking the Contractor to begin those works before the formal Contract is executed. While an Letter of Intent may come in many forms, it’s essentially a communication expressing an intention to enter into a Contract at a future date.

4 Tendering Tips

Are you tired of not winning tenders? Here are some practical tendering tips to help you win a tender and comply with construction industry standards.

What is a Performance Guarantee?

A Performance Guarantee is a contractor’s promise to complete the construction project within the deadlines, while meeting all contractual conditions.

Government Tender, How to successfully apply for them

The first thing you need to do is find Tenders that fit your business. Tenders and RFQ’s are advertised in various places, ranging from newspapers to websites.

Contractors All Risk
Construction Guarantees
Construction Liability
Professional Indemnity

CALL US ON 080 777 777 1

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