BONDS, SURITIES & GUARANTEES
Tel: 01246 241002 or 07971 996658 Fax: 0845 127 4385
E-mail: Rycroft Associates
A simple guide and overview to the different bonds available:
Credit Insurance
Finance
Credit Insurance Structures
Credit Insurance Costs
Jargon, Myths and History
Contact:-
Telephone Numbers
Fax back contact form
Email contact
Finance quote form
Credit Insurance quote form
Offices
Construction Bonds or Performance Bonds as they are more commonly known (or sometimes surety bonds), guarantee up to the value of a bond which protects the employer against any losses and/or damages sustained as a result of the contractor failing to perform his contractual obligations.
Performance Bonds will, typically, have a face value or idemnity limit of 90% of the contract price. If the bond is called (due to the contractor failing to perform), the bond holder can ask the insurer to pay the net damages sustained up to the indemnity level or arrange for completion of the work depending on how the bond is worded.
Performance bonds have been around since 2,750 BC and more recently, the Romans developed laws of surety around 150 AD the principles of which, still exist.
NHBC If you need to join a housing association such as the NHBC a bond can be arranged for this (the benefit of having a bond is that if you don't have one then you will need to put cash up front (secured by your bank in a seperate account), the problem with this is that it ties up working capital).
Travel Bonds ABTA - Travel Agents and Tour Operators not involved with flights CAA ATOL - Tour Operators and discounted scheduled/non-scheduled seats on flights IATA - 30 days deferred payment for companies selling seats for airlines who are given the ability to hand tickets out at the booking point. Travel Agents, Tour Operators, Airline Companies, Bus and Coach Operators etc are required to provide a bond in favour of their trade association (e.g. ABTA, ATOL) at renewal of their licence. In the event of the company’s insolvency the association will deal with claims from customers in respect of either advance payment lost or the cost of repatriation of customers abroad following the collapse of the applicant company. whereby a bond is called the insurer is responsible to the trade association as opposed to the end users (customers).