Construction 
Guarantees

Advance Payment Guarantee

Where the employer makes an advanced payment to the contractor, the employer will require an advance payment guarantee.

Bid Bonds or Tender Guarantee

Where a contract was awarded through a tendering process, then normally all contracts will be accompanied with a tender guarantee. The principle here is to cover the employer against costs incurred where the tender for some reasons could not be taken up.

Performance Guarantee

The performance guarantee covers the employer if the contractor fails to perform as governed by the contract. It therefore covers the cost of completion.

The retention guarantee is a form of security against default or defective work.