viewing Bonds and Guarantees Services
TENDER / BID BOND
Given in support of a customer's tender as assurance of the intention of the customer to sign the contract when the customer's tender is accepted.
A performance bond is given in support of a customer's obligation to fulfill a contractual commitment. Normally required after a customer has been awarded a contract to perform.
When a performance bond is issued on behalf of a customer, the Bank guarantees to the third party (buyer or employer) that the Bank will pay any claims that may arise due to non-compliance or faulty completion by the supplier or contractor, up to the total value of the amount guaranteed.
ADVANCE PAYMENT BOND
This is need when the contract terms provide for specified amount of the total contract to provide up-front to the contractor in order to facilitate cash-flow and operations. The Bond guarantees that in the event that the obligations are not met the Bank will refund the amount of the Advance Payment to the third party.