Performance Bond
This is issued to one party of a contract as a guarantee/collateral against the failure of the other party to meet obligations specified in the contract. It is common in construction and real estate development (Private & Government Projects). In such situations, an owner or investor may require the developer to assure that contractors or project managers acquire it in order to guarantee that the value of the work will not be lost in an event of unforeseen circumstances.
Advanced Payment Bond
This product is collateral that guarantees that the advance payment will be returned to the buyer if the seller does not fulfill its obligations on delivery of goods or services. It is also required when a Contractor applies for an advance payment from the Principal to help fund the preliminary costs and mobilization works of the contract.
Bid/Tender Bond
Issued as part of a supply bidding process by the contractor to the project owner to provide guarantee, that the winning bidder will undertake the contract under the terms at which they bid.
Retention Bond
Retention is a percentage (often 5% -10%) of the amount certified as due to the contractor on an interim certificate that is retained by the client. This ensures the contractor properly completes the works required under the contract.
Warranty Bond
This product is collateral that provides guarantees to the project owner that the contractor who did the work will come back and fix defective work or material should an issue arise during the warranty period specified in the contract.
Customs Bond
This product is a contract used for guaranteeing that a specific obligation will be fulfilled between customs and an importer for any given import transaction. Its main purpose is to guarantee the payment of import duties and taxes.
Repayment Guarantee/Credit Security Bond
This product known as credit security bond or repayment guarantee serves as collateral for the repayment of a commercial or private loan. A loan is often made subject to the provision of collateral by the borrower him or herself or a third party. The borrower therefore procures this guarantee as a replacement for the loan collateral to the beneficiary (loan provider). The beneficiary can generally assert claims under this guarantee by declaring in writing that the borrower has not repaid the loan or outstanding balance upon maturity.
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