A form of guarantee, given by the seller in a contract, that in the event of the terms of the contract not being fulfilled, the buyer will be able to claim compensation in the form of a Guarantee Insurance policy
A performance guarantee assures payment to the employer in the event that the contractor does not fulfill his obligations in terms of the underlying contract.
Most major project agreements call for stage payments to be made as the work progresses. Stage payments are triggered by presentation of progress certificates certified by the project engineer. These stage payment clauses frequently provide for the employer to retain a certain percentage of each stage payment as cover for any hidden defects in the completed works which may arise at a later date.
Anyone who is doing a project needs a guarantee – The principal of the project will instruct the contractor to obtain a Performance Guarantee for the work.
A principal of a large project will often demand that the various contractors on the project obtain performance guarantees to protect their interests in case the contractor is unable to complete the project because of insufficient financial or working capabilities. If you are intending to do many projects where guarantees will be demanded, we can set up a facility with an insurer to grant you the necessary guarantees. If a guarantee is then called on by the principal, mediation & investigation will all be sufficiently undertaken to ensure that only the portion of the project not completed is paid out for by the guarantee.
Other insurance to be considered along with Construction Guarantee Insurance – Most principals also require Contractors All Risks with Public Liability Insurance to be taken out by contractors on their sites. We specialize in this type of cover. We can also assist you with insurance on your machinery, Professional Indemnity, Specialised Liabilities and General works risks.
Physical Address: 19 Pretoria Road, Morehill, Benoni
Postal Address: P.O Box 13005, Northmead 1501
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Registration Number: 1993/001142/07