Performance Bonds
Offer your clients a guarantee of completion.
Construction contracts are becoming more complicated and additional requirements are constantly being imposed on sub contractors to a main contract
Key Benefits
- Provides your employer with the comfort that a project will be completed according to the terms and conditions of the underlying contract
- Allows for the satisfying of your employers damages up to a pre agreed limit in the event of a default
- Helps confirm your financial status to an employer
- Can provide you with a competitive edge over contractors unable to secure such a financial guarantee
- Helps to meet your contractual obligations
- Trade Direct are able to access Performance Bonds from all the major bond providers
Performance Bonds have always been a part of large constructions contracts to protect the employer against a sub contractor failing to fulfil his contractual obligations mainly due to financial difficulties. The bond provides a guarantee that a project will be performed according to the terms and conditions of the contract and provides a remedy to the employer in the form of cash damages in the event a default by the contractor causing a loss.
In the construction industry, Performance Bonds issued by Insurance Companies are used to reassure Employers that the Contractor will 'perform' in accordance with the Building Contract.
Obtaining Performance Bonds from traditional sources can be difficult and time consuming. Trade Direct understand these difficulties and aim to make the process as simple as possible.