A surety bond offers a guarantee from a third party (the guarantor / bond company) to a beneficiary (the client) that an agreed sum of money will be payable to the beneficiary in the event that a named company (the supplier) fails to deliver on its contractual obligations.
For example, if the supplier delivers late or fails to meet a specific standard, then the guarantor agrees to pay a set financial penalty to the customer, protecting them against any losses that result from the supplier’s failings. Bonds may relate to contracts (performance bonds, road and sewer bonds), or to financial liabilities (custom bonds, duty deferment bonds, pension bonds, deposit bonds).
Surety bonds are often a more suitable alternative to Bank Guarantees, as they can be provided on an unsecured or part-secured basis.
Bonds we cover include:
- Construction bonds
- Performance bonds
- Maintenance bonds
- Retention bonds
- Road and Sewer Bonds such as Section 38 – Road bonds and Section 104 – Sewer bonds
- Bid bonds or tender bonds
- Advance Payment Bonds or Advance Payment Guarantees
- Custom bonds
- Duty deferment bonds
- Premises / movement bonds (or guarantees)
- Pension bonds
We also provide a free bond wording review in partnership with our surety bond underwriters.
At The Channel Partnership, we’ll talk to you about the size and scope of your project, the service you will be providing and the guarantees that your customer wants and then our team of bond specialists are happy to talk you through the bond process step-by-step. Call us today on 01275 817320.