Performance guarantees for tenders
A performance guarantee is generally a bank or insurer-backed undertaking rather than ordinary insurance. It can compensate the beneficiary up to an agreed amount if the contractor fails to meet specified contractual obligations.
Get an Insurance QuoteWhen it may be relevant
- Construction and infrastructure contracts
- Large supply or service agreements
- Awards conditional on a guarantee before commencement
What to confirm before arranging cover
- Guarantee percentage or amount
- On-demand or conditional wording
- Expiry and reduction provisions
- Counter-indemnity and financial requirements