Construction insurance
Construction guarantee
A financial commitment that protects the project owner if the contractor defaults.
The essentials
The project owner often asks the contractor for a financial guarantee to protect itself against certain defaults.
Obtained from a surety insurer, it can preserve your bank credit lines. We help you understand the commitment and prepare the application.
The situations concerned
- A construction contract requires a guarantee.
- Your bank limits are tied up by other projects.
- You want a recurring solution for your projects.
How we support you
- Reading the guarantee clauses of the contract.
- Preparing the financial file requested by the surety insurer.
- Following the guarantees issued and their release.
Before deciding
Points to examine
- 01The exact wording of the guarantee required.
- 02The duration and conditions of release.
- 03The financial documents requested.
How it works
How we move forward together
- Step 1
Understand the project
Type of works, parties involved, timetable and contracts: we start from the actual project.
- Step 2
Allocate the risks
Who insures what between the project owner, contractors and consultants? We clarify responsibilities.
- Step 3
Put in place
Covers and guarantees are placed before work starts, with checked documents.
- Step 4
Follow the site
Amendments, changes to the timetable or the amount: the arrangements follow the progress of the works.
- Step 5
Close
Handover, end of guarantees and retention of the relevant documents.
Frequently asked questions
Your questions
Is it insurance?
No, it is a guarantee: if it is called, the guarantor pays the beneficiary and then seeks recourse against the contractor.
Why go through an insurer rather than a bank?
It can preserve your bank credit lines. Both options are worth comparing.
What documents need to be provided?
Generally, annual accounts and information on ongoing projects. The exact list depends on the guarantor.
When does the guarantee end?
According to the terms of the guarantee wording. Its release must be followed up to avoid commitments remaining open.
Related services
Let’s talk about your business.
A first conversation to understand your situation, with no obligation. Call us or write to us.