types of bonds

Advance/Stage Payment bonds

Common in the construction sector, Advance or Stage payments assist a contractor to overcome such things as high raw material expenditure.

This type of Bond will protect the customer making the advance payments in the event of the Default of the contractor.

Contract tender/Performance bonds

Used extensively in the construction and engineering sectors, these Bonds protect against non performance.

A Tender Bond may be a compulsory part of a contract Tender process. If the Tender is successful it can be converted into a Performance Bond for typically 10% of the final contract value.

Retention/Maintenance bonds

Retention monies under a construction contract can also be covered. This ensures the contractor fulfils any maintenance, defects or liability under a contract.

Customs/VAT and duty deferment

An invaluable Bond for freight forwarders and high volume importers alike. This type of Bond allows the flexibility of Duty, otherwise payable immediately upon import of goods, to be deferred for up to 45 days.

Tenant default/Landlord indemnity

This type of bond protects a landlord from non payment of rent under a commercial lease. It includes cover for a specified period of dilapidations.

Restoration bonds

Commonly sought from companies involved in quarrying, open cast mining or landfill, these Bonds provide a Local Authority or similar body with the certainty that restoration works will be completed upon a specific site.

For more information on Surety and Bonds or guidance on Surety please contact us via the contact form or ring us on 0845 456 8838