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Performance Guarantees
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Performance Guarantees

A Performance Guarantee is issued by an insurance company or bank to a contractor to guarantee the full and due performance of the contract according to the plans and specifications.

A project requiring a payment & performance bond will usually require a bid bond, in order to qualify to bid for the project. A payment and performance bond will then be required of the winning bidder as a security to guarantee job completion.

Should the contractor fail to construct the building according to the specifications laid out by theĀ contract, the client is guaranteed compensation for any monetary losses up to the amount of the performance bond.

Requirements For Application

SME’s applying for a facility with PCBS needs to fulfil certain prescribed requirements by submitting the following documents:

  • Company profile (including an organogram and copies of the current and previous contracts)
  • Two years’ financial statements and three months’ bank statements
  • Letter of appointment
  • Contract information
  • Guarantee wording requirements
  • Company registration documentation
  • Copies of all members’ identity documents and income tax numbers
  • Copy of letterhead
  • Tax clearance certificates
  • CIDB certificate

All applications are subjected to a thorough analysis to establish the contractor’s risk profile. PCBS also determine contractors’ financial standing and their resource capabilities to fulfil the contract obligations. Furthermore, an owners’ character assessment is carried out.

 

Corporate Clients

  • Emphasis is placed on the financial standing of the contractor
  • Company structure and shareholding
  • Contract information
  • Guarantee wording requirements
  • Securities available

 

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Application Forms