FAQ's

The purpose of a performance bond is to secure any claims by the beneficiary on the applicant arising from default in delivery or performance of the terms of the contract (e.g. – construction, assembly, execution). A performance guarantee usually replaces the bid bond on award of the contract.

It is customary for the employer of a contractor to retain a portion of the contract price for a certain period after completion of the contract. This is to safeguard the employer in the event of defects arising in the work of the contractor after completion of the contract. Sometimes, instead of retaining the money, the beneficiary will accept a guarantee for the amount to be retained.

A customs bond ensures that specific obligations will be fulfilled between customs and the importer. The bond guarantees that all customs duties, customs penalties and other charges levied by Customs, will be properly paid and that all trade procedures will be followed. Custom bonds inter alia, also include the following: - Deferment Bonds - Remover of goods in bond - Container Depot Bonds - National Consignor bonds - Bonded Warehouse - Degroupage Depot - National Consignor Bonds

A Fuel guarantee is a guarantee issued in favor of the fuel company protecting them against payment default by the commercial customer for fuel supplied.