Performance Bonds
Provide security to the obligee for the principal's performance of specified contractual obligations.
Surety Bonds
Secure Your Commitments. Build Business Credibility.
Surety bonds and guarantee solutions help you meet contractual obligations and win more business, giving clients assurance of performance without tying up your cash.
Contractual Obligation Support
Performance & Financial Guarantees
Enhanced Business Credibility
Flexible Bond Solutions
Support Across Project Lifecycles
What Is Surety Bonds?
Understanding Surety Bonds
Surety Bonds guarantee performance of contractual or statutory obligations among the Principal, Obligee and Surety, offering an alternative to traditional security that helps businesses preserve banking limits and working capital.
What Does It Cover?
- Performance obligations under contracts
- Advance payment obligations
- Bid and tender requirements
- Contractual and statutory obligations
- Financial and commercial commitments
Example:
If a contractor is awarded a project and the contract requires a performance security, a Surety Bond can be issued in favour of the project owner to provide the required security, subject to the bond wording and applicable terms.
Coverage Components
Comprehensive Protection At Every Level
Advance Payment Bonds
Provide security in respect of an advance payment made to the principal under a contract, subject to the terms and conditions of the bond.
Bid & Tender Bonds
Provides security for tender or bidding requirements and demonstrates the bidder's commitment to proceed under the tender conditions.
Retention Money Bonds
Can replace retention of funds under eligible contracts, helping businesses preserve working capital while providing the required security.
Customs Bonds
Provides security for customs-related obligations where a bond is required by the authority, subject to regulations and bond conditions.
Statutory & Regulatory Bonds
Can provide security for statutory, regulatory or other obligations where bonds are permitted or required by the authority.
Other Contractual Bonds
Depending on the contract and obligation, customised bond structures may be considered for specific commercial or project requirements.
Advisory Support
Secure Your Commitments Before Risk Finds You
Every contract carries obligations. We help businesses structure suitable Surety Bond solutions around their contract and obligee requirements.
- 1.
Contract & Obligation Assessment
We review the contract, tender requirements, bond amount, tenure, obligee requirements and nature of the obligation.
- 2.
Bond Structuring & Placement
Our specialists structure the right bond solution and coordinate with suitable surety providers.
- 3.
Documentation & Issuance Support
We coordinate the required financial, contractual, KYC, and other documentation to facilitate the bond issuance process.
- 4.
Dedicated Bond Support
Our team supports amendments, extensions, cancellations, claims coordination and other bond requirements throughout the lifecycle.
- 5.
Bond Review & Renewal
We monitor bond expiry dates, project timelines, contractual changes and extension needs to help ensure continuity of security.
Ready To Explore Surety Bonds?
Strengthen your contractual commitments with Surety Bond solutions designed around your business and project requirements.
Frequently Asked Questions
Answers to Common Insurance Queries
Assessment may consider financial strength, working capital, contract experience, management capability, project execution history and existing contractual commitments.
The bond's obligations, trigger conditions, demand provisions, expiry and liability limits determine the surety's potential exposure and therefore require careful review.
Equirus Raghnall analyses the underlying contract, bond requirement, principal's financial profile and required capacity before approaching appropriate surety markets.
Contract pipelines, financial strength, existing guarantees and aggregate exposure are presented to markets to develop a suitable capacity strategy.
