Guarantees & Surety
Through our strategic alliances and long-standing insurer relationships, HW Brokers can arrange a range of guarantees for contractors and businesses. These solutions help employers and other contracting parties manage financial and performance-related risk.
Bid Bonds or Letter of Intent
Bid bonds are commonly required when submitting tenders to public authorities or private employers. They provide assurance that, if awarded the contract, the bidder will enter into the agreement and furnish the required performance guarantee.
Performance Guarantees
A performance guarantee supports the contractor’s obligation to complete the work in accordance with the contract, plans and specifications.
Maintenance Guarantees
Maintenance guarantees generally cover defective workmanship or materials for an agreed period after completion. Depending on the contract, they may also include obligations relating to efficient or successful operation and may be accepted in place of retained funds.
Retention Monies Guarantees
A retention money guarantee may be used in place of amounts retained by the employer and generally supports the contractor’s obligations during the defects or maintenance period.
Advance Payment Guarantees
An advance payment guarantee protects an employer that provides funding to a contractor before work is completed. The guaranteed amount usually reduces as the work progresses and the advance is recovered through interim payments. These guarantees are generally issued together with a performance guarantee.
Supplier Guarantees
Supplier guarantees can support credit extended to contractors for materials such as steel and other building products. They are intended to manage the supplier’s exposure where goods are provided on credit within the construction industry.