Eligible projects to be supported
Through a bond insurance the following different projects may be supported:
- Public Works (local, provincial and national)
- Private Works (Investment, industrial projects, etc.)
- Products Supply to public and private entities
- Service Rendering to public and private entities
Without being it necessary to block financial assets or to fill banking credit lines, and at costs which are much lower than any other alternative, there is a wide variety of products to meet the needs arising in this type of business:
- Bid Bond
It covers the liability to keep the suggested offer and sign the contract if it were allocated, presenting the guarantee of contract execution.
- Contract (Compliance) Bond
It insures the compliance with the liabilities stated in the contract as and when due. Custom and usage set between 3% and 15% of the contract guaranteed.
- Advanced Payment Bond
It covers the correct application of the amounts received to those works effectively hired, released according to the advance cash payment of the contract.
- Downpayment Bond to Purchase Material
It insures the good use of the amounts received as downpayment and destined to purchase material, released together with the effective storage registered.
- Possession Bond
It covers the reimbursement of goods, consigned when in the taker's hands, to the insured to be used, repaired or incorporated to the work. The bond is on the valuation of the goods involved.
- Retention Bond
It covers the obligation of the contractor or supplier to cure eventual hidden defects, substituting the retentions that affect the taker in each certification. It is released once the guarantee term is over.
- Information about the liability to be insured
Some supporting documentation will be asked for: copy of the contract, bidding conditions, purchase order, request note, or equivalent - in those cases where the obligation does not arise from a public regulation.
- Information about the contracting party
If it is the first time the person operates with us, we will ask for a copy of the last financial statements; if it is a society or an individual we will ask for a summary of the amounts invoiced in the last 12 months and information about their assets.
- Additional Information
According to the risk assessment to be guaranteed, in some cases some additional information may be asked for about the liability to be guaranteed or the contracting party/taker of the insurance.