A Bond is a commitment by a third party, which is usually the insurance company, to pay interest and principal installments due on a bond in case the bond issuer defaults.
• Performance Bonds
This type of policy covers the employer of a project if the contractor is in breach of his obligation (s) under the contract and fails to complete the project at the agreed date.
• Mobilization Bonds
A policy that covers the employer if the contractor is in breach of its obligation (s) under the contract because the contractor used the advance payment for purposes other than the costs of mobilization with respect to the work.
• Bid Security
This type of policy covers the employer of a project if the bidder of the project:
• Withdraws his bid during the period of bid validity specified in the Bid Form
• Having been notified of the acceptance of his bid by his employer, during the period of bid validity:
◦ Fails or refuses to furnish the Performance Security, in accordance with the instructions to tenderers,
◦ Fails or refuses to execute the Agreement Form in accordance with the instructions to
◦ Tenderers, if required.