We have specific expertise in raising insurance-backed guarantees from leading insurers. The insurers with whom we deal are reputable and accredited with most employers in South Africa including all municipalities, ESKOM Ltd, Transnet SOC Ltd and blue-chip listed entities.
When a contract is awarded, a performance guarantee equalling 10% of the contract value is usually required. This guarantees the performance.
Retention Money Guarantee
During the period of any contract, some employers can withhold between 5% to 10% of the value of every payment made to the contractor.
A bid bond, or tender guarantee, is a safety mechanism for employers with regard to contractors that may default before or on the tender being awarded.
Advance Payment Bond
The employer advances a certain amount of money to the contractor for work to be completed. The advance payment can be used to purchase plant, machinery
Materials on/off site Bond
Before any delivery of materials to site or constructed into the works, the contractor can obtain payment for the materials from the employer.
By working closely with leading specialist insurers, we provide facilities at affordable collateral levels and our premium rates are very competitive.
A quotation usually takes 48 hours to finalise and, with all the correct documentation completed and information submitted, the facility can be put in place within four to seven working days. With the facility in place, a guarantee is issued within 24 hours. Your facility can then be used for all your future guarantees up to a prescribed facility limit and multiple guarantees can be issued.
Banks normally take 100% collateral and still charge fees to have such a facility in place. Our insurers offer lower collateral requirements and you pay only for the guarantees you require.
A guarantee facility separate from the bank will enable your company to grow since your financing can be handled by the bank and we do your guarantees.