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Performance bonds guarantee that the Bonded Principal will undertake and fulfil their contractual obligations agreed with the Beneficiary.
Performance Bonds
Performance bonds guarantee that the Bonded Principal will undertake and fulfil their contractual obligations agreed with the Beneficiary. In the event of contractual default (usually via insolvency of the Principal), the Beneficiary will hold security in the form of the bond which will reimburse and pay out losses and damages up to the maximum bond amount.
Who are they for? Main Contractors, Sub-Contractors, Service Providers.
Warranty and Maintenance Bonds
Warranty & maintenance bonds provide security to the Beneficiary for any defective works or faulty materials which may be discovered post project handover, during the maintenance period. Maintenance bonds will either be incorporated into the contractual performance bond that would usually reduce by 50% on practical completion or they will be issued as a standalone bond which replaces the contractual performance bond as a lesser sum.
Who are they for? Main Contractors, Sub-Contractors.
OOUU bonds (Urbanisation)
An OOUU bond is a guarantee that a builder or real estate developer provides to a municipality to ensure compliance with obligations regarding payment of building charges (roads, sewerage, lighting, etc.) or the proper completion of planned building works, especially in cases of instalment payments or offsetting works, protecting the public body from any defaults