Contract performance bond
A performance bond covers the damages suffered by the customer in the event of a non-performance of the contract by the contractor. They may be required for statutory, contractual or marketing purposes across a wide range of commercial situations. A Performance Bond ensures the customer is safe in the knowledge that they are able to obtain satisfactory completion of the contract.
Road and sewer bonds
Local authorities and statutory agencies require bonds in connection with agreements under the Highways, Water and Planning Acts and other statutory provisions. The bond guarantees the completion of roads and sewers to enable them to be adopted by the relevant local authority. They are frequently required by property developers and house builders.
Advance/stage payments bond
Advance or stage payments are often required particularly in respect of large contracts, to assist with the contractor’s mobilisation costs or the cost of raw materials. In exchange, the contractor will arrange for their surety to provide an advance payment bond that will protect the customer in the event of the contractor defaulting under the terms of contract.
Pension bonds
Under local government pension scheme requirements, staff transferred from the employment of local authorities to private sector companies may choose to continue to belong to the local government pension scheme. The guarantee protects the local authority from loss in the event that the private sector company defaults in payment of contributions to the pension fund.
Retention/maintenance bonds
Instead of monies being held for the duration of a contract, the contractor can provide a bond as an alternative. The bond guarantees that the contractor will fulfil its maintenance (or defects liability) obligations under the contract.
