Do you work in the Construction Industry and are you aware of Performance Bonds and the risk you are putting your Business at without having one – maybe it’s because of a lack of understanding or you are not sure where to turn to …
It is a fact that every Builder should be carrying cover on a Bond. Performance Bonds
What are Performance / Contract Guarantee Bonds?
A Contract Guarantee Bond, or otherwise known as a Performance Bond, is a type of security that guarantees the successful completion of a project/scheme by the principle (contractor).
A Contract Guarantee Bond, therefore, protects the beneficiary (housing association / developer), from any losses that may arise because of the principle failing to fulfil their obligations within the agreement.
The bond may be called upon if the contractor becomes insolvent or completes the work to an unsatisfactory standard, as detailed in the agreement. The Contract Guarantee Bond represents a sum of money (usually 10% of the contract value), which can be used to complete or improve the contractors’ work. The purpose of a Contract Guarantee Bond is to safeguard the beneficiary from any loss of value on their development.
Please contact ARC Broker Services on 01529 675 022 to find out further information.