Bonds & Guarantees

Bonds and Guarantees are financial instruments that provide comfort to an employer or buyer that, should the contractor fail to perform their obligations under a contract, they will be compensated by the issuer. The compensation is usually for a proportion of the contract sum, e.g. 10% of the contract sum.

Bid Bonds

Issued for contracts with a tendering process to safeguard the issuer from losses occasioned by non-fulfilment.

Performance Bonds

Issued to guarantee the fulfilment of a contract in its totality.

Advanced Payment Bonds

Protects advance payments, guaranteeing that the funds will be used as agreed.

Retention Bonds

Guarantees that the contractor will carry out all necessary work to correct structural and/or other defects discovered immediately after completion of the contract, even if full payment has been made to the contractor.

Travel Industry Bonds

Provided on behalf of tour operators and travel agents to meet their statutory requirements. The bond is issued in favour of the authority concerned and allows the tour operators or agents to obtain licenses to supply inclusive air holidays to overseas destinations.