Contract Bonds

Contract Bonds

Established by contractors for the benefit of their clients or potential clients, Contract Bonds provide security against default or non-performance.

QBE Contract Bonds include:

Bid Bonds are submitted with a bid or tender to ensure that your client will actually enter into a contract if their bid is accepted. A Bid Bond also guarantees that a performance Bond will be supplied.
Performance Bonds support the contractor's obligations during a contract period providing security to their customers against default or non-performance.
Advance Payment Bonds serve to secure the principal's position where funds are advanced to your client for the purposes of the pre-purchase of equipment or site establishment.
Retention Release Bonds provide security to the principal where funds are advanced to your client from the retention fund.
Maintenance Bonds secure your client's post-completion obligations during the warranty or latent defects period, usually 3 to 12 months post-completion.
Off-Site Material Bonds cover the principal in respect of goods or materials produced and held off site and paid for by them. The Off-Site Materials Bond responds where the goods or materials are not available when required for incorporation into the contract.