Bonds

The Main Bonds we can offer you include:

• Contract/Performance/Surety Bonds
• Development and Roads & Services Bonds - to satisfy Planning Authorities
• Advance Payments Bonds and Retention Bonds
• Trade Bonds - to satisfy the Revenue Commissioners & Customs

Contract, Performance or Surety Bonds are guarantees to pay the direct loss suffered by a party (usually The Employer) as a result of a breach of contractual obligations by the other party (the Contractor). In essence, this means that in the event of default by the Contractor, most often insolvency, The Employer will be able to recover the necessary additional costs incurred from the Insurer up to the level of the bond.

The Additional costs normally incurred include:

• The extra amounts that need to be paid to a new Contractor to finish the work
• Site security
• Additonal Insurance and Architects/Engineers/Design Fees/Charges

While a bond is not a mandatory requirement, prudent Employers insist upon a bond to be provided by Contractors in most cases. For a first time bond application, a new applicant proposal form must be completed. In addition to this form, other information is required to enable underwriters assess the contarctors experience, financial position and capacity to carry out the expected workload.

This will usually include a profile of the form, in addition to:

• Audited accounts (2 years)
• A forecast of the current year's Trading
• Management Accounts, if available
• Scehdule of Work in Progress
• Bank Facilities
• Architects form for the contract
• Details of contracts completed in the previous 5 years
• Details of Key Personnel

To make and  enquiry complete the Enquiry Form and email to Paul Farrar paul@affinityinsurance.ie

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