Bond Insurance

What you need to know

What is Bond Insurance?

A bond is contract between three separate parties: the principal, a person who will perform a set act;   the obligee, a person who is the recipient of the principal's action; and the surety, a person who is obliged to guarantee that the principal does what he is contracted to do.  If the principal fails to follow through, the surety must step in to perform as the principal promised.

Who needs Bond Insurance?

Contract surety bonds are widely used in the construction industry to guarantee a contractor will complete a building project according to specifications, will pay certain bills for labour and materials and the work will be free from defects for a specified period of time.  Commercial surety bonds are used to provide a wide range of other guarantees in many different situations.

The Winley Insurance Group solution

Implementing a comprehensive risk management plan and making the correct financial decisions are vital to the successful completion of any construction project.  Many business owners unproductively tie up their cash reserves as security instead of securing a bond.  Bonds offer the project owner security for the duration of any contract while freeing up your company cash reserves and cash flow.

If you’re looking for Bond Insurance or if you just want to learn more, Winley Insurance Group can help.  We offer a variety of bonds to meet your unique business needs:

• Performance Bonds: provides the project owner with a guarantee that in the event of a contractor’s default, funds up to the value of the bond are still available to complete the contract.

 

• Maintenance Bonds: provides the project owner with a guarantee to the value of the bond that the contractor will fulfil their latent defects or maintenance obligations as stated in the contract.

 

• Bid or Tender Bonds: provides the project owner with a guarantee that the contractor will honour their tender and provide a performance bond if successful at the tender stage. This type of bond represents an important sales advantage over other contractors at the tender stage.

 

• Advance/Stage Payment Bonds: allows advance payments under an awarded contract to enable initial purchase of essential materials required to perform the work.  This option provides significant cash flow benefits to the contractor.

 

• Payment Bonds: provides a guarantee up to the value of the bond that secures payment from the contractor for the subcontractors, labourers and materials.  Often, a payment bond is the only protection for those supplying labour or materials.

 

Contact us for additional information or a quote

Winley Insurance Group is ready to help with all your bond needs.  Contact us at 1300 732 205 or begin our Bond Insurance quote process now.   Our Bond Insurance brokers service all of Australia.