Overview of our Bond Types
Performance Bonds
Performance/Contract Bonds: Contract Bonds are the most commonly issued type of bond.
Performance/Contract Bonds:
These are the most commonly issued type of bond and are designed to cover the additional cost incurred by the Employer in the event of default (breach) on the part of the Contractor.
The most common reason for default is due to non-performance as a result of Contractor Insolvency.
The use of performance bonds has become more widespread in Ireland and they are viewed as a critical
requirement for managing risk on construction projects.
Development Bonds
These bonds required by the Planning Authority to ensure the satisfactory completion of essential infrastructure of a shared or public nature (e.g. public lighting, footpaths, etc).
Development Bonds:
These are effectively performance bonds required by the Planning Authority to ensure the satisfactory
completion of essential infrastructure of a shared or public nature (e.g. public lighting, footpaths, etc).
The bond is required prior to the commencement of works and will remain in place during the works and up
to 1 to 2 or more years after completion.
The bond expires when the Local Authority takes the site in charge, i.e. certifying that the works have been completed to their satisfaction.
Advance Payment Bonds
Advance Payment Bonds are designed to provide
credit protection to the funder where finance has been provided in advance at the commencement of a contract.
Advance Payment Bonds:
Advance Payment Bonds are designed to provide
cover in situations where a deposit is paid by the Employer to the Contractor in advance of delivery of specific items or material to site and provide
protection to the Employer in the event of non-performance/delivery.
Generally, these bonds are required in instances where raw material needs to be ordered prior to fabrication and can assist activity along the supply chain.
Deferred Duty & Tax Warehouse
A deferred duty bond/guarantee is a guarantee to Revenue and Customs for the payment of duty and taxes payable or potentially payable.
Deferred Duty & Tax Warehouse
A deferred duty bond/guarantee is a guarantee to Revenue and Customs for the payment of duty and taxes payable or potentially payable at a future date e.g. upon sale of goods or whilst in storage (warehouse bond).
Primary users of this product are companies
exposed to relatively high excise duties, e.g. Alcohol, Tobacco and the Motor trade.
A deferred payment facility improves liquidity as the payment of duties
Transshipment (TFS) Bonds
TFS bonds are a mandatory requirement for any
company exporting or importing waste within, into and out of any jurisdiction in the EU.
Transshipment (TFS) Bonds
TFS bonds are a mandatory requirement for any
company exporting or importing waste within, into and out of any jurisdiction in the EU.
In Ireland, Dublin City Council is the designated National Competent Authority for the export, import and transit of waste shipments.
The Irish National TFS Office (NTFSO) was established to implement and enforce the Regulations pertaining to TFS
Bespoke Solutions
Our underwriters have deep industry knowledge and experience in various markets and can tailor bonds to meet your specific requirements
Bespoke Solutions
Bespoke Solutions / Bank Guarantee – substitution:
Our underwriters have deep industry knowledge and experience in various markets and can tailor bond to meet your specific requirements and
advise on contract terms. Providing a cost-effective alternative to the Bank market and freeing up capacity under Bank lines