Do you need a Performance Bond?
Contractual Obligations in the Construction Contract will set out the requirement for a Performance Bond or sometimes referred to as a Construction Guarantee Bond to be provided by the contractor. The Performance Bond is essentialy Guaranteeing the contractors obligations to complete the works and is often put in place prior to the works commencing.
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What Is A Performance Bond?
Performance Bonds / Contract Bonds are a type of Surety Bond and are written promises to pay for direct loss or damage suffered by a third party as a result of a breach of contract and are typically issued for 10% of the contract value.
Performance Bonds are common in construction projects and protect the Employer against the Contractor failing.
How Do Performance Bonds Work?
A Performance Bond is issued in favour of the Employer and provides a fixed amount which can be claimed upon should the Contractor fail.
The Bond is put in place at the start of the Contract and will run until Practical Completion or Making Good of Defects. Once the designated end date has been reached the Bond automatically expires.
Will I Be Able To Obtain a Bond?
The simple answer to this is, Yes, we can supply Bonds to all companies, new and old, we can even issue Bonds for JV’s and SPV’s. Our wide range of providers allows us to find the best possible solution depending on your circumstances.
Will I Need To Provide Additional Security?
All Bonds, without exception, ask for some level of security or collateral from the applicant. This is a minimum of a Company Indemnity but can be higher depending on the Bond amount and other underwriting factors. However we will always aim to get you the best option with the lowest security and avoiding Personal Guarantees or Cash Deposits where possible.
Why Use Rayad Insure Danismanlik Ltd Sti?
The Turkey Surety market is complex and a specialist broker with knowledge and expertise to help guide you throughout the process is essential. As a leading provider of All Surety Bonds in Turkey, we are able to Bond any size contract and consider any type of wording. We have access to exclusive markets and work for you to obtain the best terms with the lowest security.
We pride ourselves on our ability to offer:
- Competitive Premiums
- Fast and Simple Process
- Access to the most Providers
- All Wordings Covered (ABI, On-demand, Adjudication or hybrid)
- Exclusive Markets unavailable to other brokers
- Specialist knowledge of the surety market