Surety bonds throughout Europe

More than ever SME’s need to back guarantees or bonds that give high levels of confidence in the business ability to deliver on contract obligations. That is especially true for complex projects in areas such as construction, engineering and transportation, where commitments might run for multiple years, and span several borders

Many companies have traditionally looked to their bank to provide these kinds of guarantees.

Banks however are withdrawing from supporting clients due to the Basel III reforms that came into effect in 2014. These stipulate that banks must hold an amount of capital that is adequate to cover their underlying business risks. SME’s now see a major competitive advantages in supporting their projects with surety bonds issued by an insurer.

There are many variations dependent on territory that project owners require to mitigate their exposure to operational and financial risk, and these typically map onto the different phases of contract delivery. We provide the solutions at all levels with bespoke:

•      Tender Bond
•  Performance Bond Completion
•  Performance Bond
•  State or Public Body Grant/Subsidy
•  Customs Clearance Bond
•  Contractual Performance Bond
•  Payment Guarantee
•  Advance payment bonds
•  Completion Bond – Developers Prepayments
•  Waste Treatment Bond
•  VAT Refund Bond

Plus specific products required at statutory level or being market practice in given jurisdictions, such as:

•    Garantie Financière d’Achèvement       (France)
•    Cautionnement entre Constructeur de Maisons 

           Individuelles (France)

•    Aanbetalingsgarantie (Netherlands) 
•    Vooruitbetalingsgaranties (Netherlands)
•    Vertragserfüllungsbürgschaft (Germany)
•    Rückbaubürgschaft (Germany)
•    Concessioni gaming (Italy)

Underwriting

Our system seamlessly considers:

• Financial Statements: The Pillar of Stability

Detailed financial statements, including balance sheets, income statements, and  cash flow records. 

• Credit History: A Window into Financial Responsibility

 Reviewing past credit performance.

• Work Experience: Past Success as a Blueprint for the Future

Assessing track record of successful project completions

• References and Reputation: A Measure of Trustworthiness

Sourcing reliability, performance, and reputational indicators

• Bond Amount and Project Details: Analysing the Risk

Assessment of the scope of work, project duration, location, and overall risk

• Capacity and Resources: Equipped for Success

Consideration of available equipment, workforce, and subcontractors.

Value added services

     Capacity Management

Assisting our producers and their clients with:

• Financial health and liquidity
• Bank lines of credit terms and conditions
• Prior job performance experience and references
• Prior job gross profit fade experience
• Prior job revenue, cost and profit control
• Claims and change order history
• Level of perceived open and integrity-driven communication

As client’s plan for the year and years ahead, we work constructively to make sure they have adequate facilities in place to meet needs. and future contractual obligations.

  Bond portfolio Management

Bond and Surety actively manage the expiry process. Where a bond expires beyond completion of works, we will automatically arrange estimated date of contract completion in order to obtain Practical Completion Certs or to enable the negotiation of an extension to the bond and the additional costs where it is required.