Bond / Guarantee Insurance
Bid, performance, advance payment and retention guarantees for contractors and project owners.
A promise the project owner can rely on
A bond or guarantee is a promise by an insurer to pay the project owner, up to the bond amount, if the contractor fails to meet its obligations under the contract. We arrange them with insurers in the Maldives.
Who it is for
- Contractors bidding for or delivering a contract
- Project owners who need the contractor’s obligations secured
Types of bond
Bid Security
Also called a bid bond. Assures the project owner that the bidder will accept the award and sign the contract.
Performance Guarantee
Secures the contractor’s full performance of the contract, to the agreed time schedules and specifications.
Advance Payment Guarantee
Secures an advance payment made to the contractor, so that it is used for the contract as agreed.
Retention Money Guarantee
Covers the contractor’s performance during the maintenance period, so the retention money can be released.
Three things worth knowing first.
- Each bond is subject to its own terms and conditions
- The financial documents required depend on the bond value
- A board resolution and a counter indemnity agreement are required for performance, advance payment and retention guarantees
For a quote
Send us three things.
- Your company profile and portfolio, including MOA, AOA and registration
- Audited financials for the past two years, or bank statements for the past six months, depending on the bond value
- The contract or award letter. For a retention money guarantee, the project completion letter. Not needed for a bid security
Common questions
- What is a performance bond?
- A promise by an insurer to pay the project owner, up to the bond amount, if the contractor fails to meet its obligations under the contract. It secures the contractor’s full performance to the agreed time schedules and specifications.
- What types of bond can Seguro arrange?
- Four: bid security (a bid bond), performance guarantee, advance payment guarantee, and retention money guarantee for the maintenance period. All are arranged with insurers in the Maldives.
- What documents does a bond need?
- Your company profile and registration documents, audited financials for two years or six months of bank statements depending on the bond value, and the contract or award letter. Performance, advance payment and retention guarantees also need a board resolution and a counter indemnity agreement.
This page is a summary. Each bond is subject to the terms, conditions and exclusions of the insurer’s wording, which prevails. Seguro is a broker and arranges cover with the insurer.
