Performance Bonds

Performance Bonds are established by contractors for the benefit of their clients or potential clients and provide security against default or non-performance and are an alternative to bank guarantees. They provide third party financial protection, generally without encumbering assets or established credit lines and include;

  • Bid Bonds
  • Performance Bonds
  • Advance Payment Bonds
  • Retention Release Bonds
  • Maintenance Bonds
  • Off-Site Material Bonds

The guidelines for eligibility are:

  • Minimum company turnover of $30 million¬†per annum and;
  • Balance Sheet Net Tangible Assets of at least $4 million dollars.
  • Dollar for dollar, cover in terms of net tangible worth versus bond facility size. i.e.:
  • Details of the ownership structure and financials for the company group /
  • trusts involved with the applicant.
  • Owner / Shareholder guarantees are mandatory with facilities for privately owned
  • entities of this size and nature.
  • Positive cash flow, working capital and retention of profits within the business.

Peformance Bonds can offer significant assistance to companies looking to undertake major developments.