Surety Bonds

Surety Bond is a type of insurance intended for private companies or public bodies whose objective is to guarantee the faithful fulfillment of the contractual obligations stipulated by the parties, as described in the policy.

Types

Bid Bond

Utilized to keep pre-established proposals firm. It covers the risk of the refusal of the winner of the bidding to sign the performance or supply contract provided for in the tendering notice or invitation to bid.

Performance, Supplier and Service Provider Bond

It aims at indemnifying, up to the amount established in the policy, the losses resulting from the default by the person responsible (policyholder) with regards to the contractual obligations in construction, supply, or service contracts.

Advance Payment Bond

It guarantees advance payments released by the contracting party, advance payments granted to the contractor for the purchase of materials, installation at the construction site or other purposes.

Retention Payment Bond

This one substitutes the retention on each payment invoice that contracting parties normally require, resulting in greater negotiation margin and the possibility of making eventual corrections of values.

Perfect Functioning Bond

This one guarantees the indemnity, up to the amount established in the policy, of losses resulting from the inadequacy of the quality of the work, services rendered, or goods supplied, always in accordance with the contract signed between the parties.

Concessions Bond

This insurance suited for concessions, such as road and sanitation. The insurance is carried out through renewable annual policies and guarantees indemnification to the government agency that grants the concession of a service in the event of contractual default by the concessionaire.

Judicial Bond

It guarantees the payment of an amount corresponding to the deposit in court, which the policy holder needs to make during legal proceedings.

Completion Bond

It guarantees for the Financing Agency (public or private banks) the completion of the project in accordance with the contract specifications, thus reducing the risks of the Project Finance.