constrcution Bonds

Bonds and Guarantees Insurance

Specialist Construction covers

It is common practice for the Principal or employer of large contracts to expect some form of security to protect their financial interests relating to a contract. 
For example an employer will typically want to ensure that the project is completed properly, and that there is a remedy available if the contractor becomes insolvent or defaults on the contract in some other way. Similarly, the contractor will usually want to ensure that adequate financing is available for the entire project.
Security is often given in the form of a bond (a promise by deed whereby the issuer of the bond undertakes to pay to the beneficiary a sum of money) or a guarantee (an undertaking by the guarantor to the beneficiary to accept liability for any failure on the part of a third party to perform existing and future legal obligations).
Specialised insurance is available from various markets for this type of policy. A proposal form has to be completed to enable the insurers to provide a quote. 
However, there are also specific attorneys who have the expertise in drafting, advising and providing representation for their clients in respect of security.