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Surety Bonds are a valuable alternative to bank guarantees and cash retentions, as well as an effective way of increasing a contractor’s capital base. Unlike bank guarantees, which are supported by collateral and tie up valuable working capital or other assets, Surety providers evaluate the performance risk of the contractor and its ability to complete contracts. Surety Bonds can be unconditional, irrevocable, payable on demand or conditional, aligned to conditions precedent being met prior to payment under the bond.

The following are typical bond types issued under contract:

  • Bid/Tender bonds;
  • Performance bonds;
  • Maintenance bonds;
  • Retention bonds;
  • Off-site bonds;
  • Advance payment bonds;
  • Mining rehabilitation/reclamation bonds

Surety Bonds can be used for a broad range of contract types including residential, commercial, industrial, civil, engineering, mining and infrastructure. Bonds are an accepted form of contract security for most principals, including local, state and federal government departments.

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