Experts in Bonds in the Construction Sector
Our team of experienced providers will be here to provide you with the best advice on all bonding requirements.
We are pleased to be able to provide a broad suite of Bonds to our clients including: Performance Bonds, Retention Bonds, Advance Payment Bonds and Revenue and Customs Bonds.
Performance or Surety Bonds
These bonds can be issued by either a bank or an insurance company and is a guarantee to cover a loss sustained by an employer following default by a contractor.
Performance Bonds are typically for 10% of the contract value and the cost to the contractor will depend on their financial history, experience, size and length of the contract amongst other factors.
This is a guarantee enabling release of retention monies held under a specific contract.
The bond effectively replaces the retention monies held by the employer and again assist with cashflow as retentions are often held longer than the 12 months maintenance.
Development bonds are typically there to ensure that the relevant planning conditions relative to the development are met.
Revenue and customs Bonds or Duty Development Bonds - these bonds allow traders to defer payment of duties to a later date.
Advance payment bonds
This is a guarantee for monies paid in advance by an employer for goods or services provided. This is especially useful assisting with cashflow.
A guarantee to specifically cover the maintenance of a contract but does not cove release of the retention moneys.
What is a bond?
A Bond is a guarantee given to an Employer by a Surety (Usually a Bank or Insurance Company) to cover a loss sustained under the terms of a Contract following default by the Contractor.
What needs to be provided?
In view of the fact that a bond is tantamount to a financial guarantee the majority of information required is financial including audited accounts, latest management figures and completion of our standard application form and bank questionnaire.
How do I apply for a Bond?
Using our standard application form and sending it to our Bond team together with the relevant financials.
What does a Performance or Surety bond guarantee?
A Bond guarantees that if a Contractor defaults under the said Contract the Surety will satisfy the loss sustained by the Beneficiary in completing the Contract up to the Bond Sum.
How long does the Bond remain in force?
This can vary but as a general rule the Bond will remain in force for the duration of the Contract plus the maintenance period if required. The Bond may also have a specific release date inserted to avoid any ambiguity.
What is the turnaround time in receiving my Bond?
From the time we receive the completed forms and financials in we would expect to have a provisional quote within a week, subject to no further information being required
We are pleased to announce the appointment of Sean higgins to our bond department. Sean brings with him a wealth of experience in the bond market having been involved in underwriting bonds in Ireland with College Hill underwriters Ltd, on behalf of AEGON insurance (UK) Ltd, Hermes kreditversicherungs – AG, Euler Hermes guarantee PLC and Evolution Insurance.
Sean will be happy to discuss and of your bonding requirements and can be reached at Sean Higgins at direct line 01 472 4849 or email firstname.lastname@example.org.
Surety Bond Team
Director Business Insurance
Director Business Insurance
About First Ireland
First Ireland is one of largest Irish-owned Insurance Brokers in the country. Founded in 1981, the company is owned and operated by its senior partners who work full time in the business. We now employ over 160 people and our extensive client list includes Irish and International Companies, large and small, including many services firms, right through to Individual Professionals.