Construction & Civil
Surety Bonds for Financial Security
Surety facility
Surety bonds are widely accepted as an alternative to bank guarantees, providing a financial security to the head contractor and/or the developer. The most common bonds are Performance and Maintenance Bonds issued primarily in the construction, engineering and mining sectors. To qualify for a surety facility, underwriters generally require:
Turnovers in excess of $20 million
Minimum net tangible worth of $1 million
Positive working capital
Project Specific Surety Bonds
Project specific surety bonds offer an alternate to bank guarantees to the SME contracting sector. Performance and Maintenance Bonds are the most commonly issued bonds and these are primarily in the construction, engineering and mining sectors. To qualify for a project specific surety bond, underwriters generally require:
Financial accounts for the previous 3 years
Net asset position at least 2.5 x the value of the bond
Bond wording - this is usually specified by the project owner