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Performance Bond Benefits

Types of Bond

FAQs


 Performance Bonds from Installsure

Installsure is a trusted provider of performance bonds for construction and installation projects in the UK.

Working with our insurers, we can source competitive performance bond quotes at short notice so our clients find the best terms and secure a performance bond with minimum delay.

We’ll source your performance bond so you can get on with what you do best.

 

Apply for a quote

Complete the Application Form or call our team on 0207 645 3744.

Application Form

 How Performance Bonds Can Benefit Your Business

Performance bonds are increasingly required by principal contractors as part of the conditions of awarding a contract. Having access to Installsure as a performance bonds broker helps our clients stay competitive at the tender stage.

Therefore it’s important that companies have access to a client-focussed, responsive and committed broker to help them. 

 

Competitive Premiums

Installsure focus on providing high quality performance bonds at competitive prices. It’s the right cover for the right price.

Additional Protection

We only place business with insurers that are covered by the FSCS, a compensation fund of last resort for customers of authorised financial services firms.

Swift Turnaround

We'll save you time by minimising delay so you remain competitive edge when tendering for larger or commercial projects.

Reputable Brand

Installsure is directly monitored and regulated by the FCA so you can rest assured you're associated with a trustworthy and reliable brand which holds the fair treatment of its customers in the highest regard.

Flexibility

We'll tailor the performance bond cover to your specific project requirements.

Comprehensive Cover

Whatever your business insurance needs are, Installsure can assist. Our portfolio of insurance products can help insure every aspect of your business. Talk to us today about your insurance needs.

 Types of Bond we can quote for

No matter what kind of bond our clients require, we’re here to help them source the most appropriate financial product.

Performance Bonds

A performance bond effectively guarantees the satisfactory completion of a project by a contractor. The bond provides a written guarantee to a contracting company (the beneficiary) against the contractor (the principal) defaulting on any of its contractual obligations.

Generally speaking the performance bond ultimately represents an amount of money that the principal can gain access to in the event of any defaults.

These are increasingly common and are often required by an Employer when a large and/or lengthy contract is being entered into with a Contractor. The performance bond is typically for 10% of the contract value, and provides the Employer with a cash sum in the event of the failure of the Contractor to complete their work in order to cover the costs of appointing a new Contractor.

For example a sub-contract to fit new windows to a development of new homes would often require a performance bond.

Types of Performance Bond

A performance bond can be either 'on demand' or 'conditional' 

  • On demand bonds are an amount of money set out in the bond immediately on demand in writing without needing to satisfy any preconditions whatsoever (including establishing the contractor’s liability) unless the demand is fraudulent. 
  • Conditional bonds require that the client provides evidence that the contractor has not performed their obligations under the contract and that they have suffered a loss as a consequence.

Advance Payment Bonds

These are used to provide security to the Employer where a large “Deposit” is required.

For example where a Manufacturer of bespoke windows has a large order they might require a large advance payment to fund materials and/or protect themselves against non-payment for goods that have no other use.

The advance payment bond is provided by the Manufacturer to the Employer to protect the latter in the event the bespoke windows are not delivered. 

Retention Bonds

In many construction contracts a retention of 5 or 10% of the contract value by the Employer for a defects period (to cover any faults in the work) is a standard clause.

A retention bond can be used to release this “locked up cash”.

 Performance Bonds

 Advance Payment Bonds

 Retention Bonds

Performance bonds are typically for 10% of the contract value. Rates are normally around 12 per cent for a 12-month period for a secure company, however this can increase for bonds over longer periods.

Most employers realise they will pay for the performance bond through a higher contract price. Usually they ask for the cost to be shown separately. Some employers use the ability to get a performance bond and the rate offered as part of their selection process.

Applying for a performance bond with Installsure is easy, plus our team is here to provide assistance and answer your questions at every step of the way:

  1. Complete and return the Installsure Performance Bond Application Form

  2. Be prepared to provide additional information which might be required including:

    1. A Work In Progress (WIP) form showing your previous and current contracts to establish your experience
    2. A bank account summary form for the last 12 months showing maximum, minimum and average balances of the company’s cash resources
  3. Once our insurers have all the information they require, we will assess the quotes available and summarise these for you.

  4. Once we have agreed the Bond Provider with you, all documents and payment must be made in advance of the performance bond being issued.

Get started today – download the Installsure Performance Bond Application Form or call our team on 020 7645 3744.

As long as you can provide all the paperwork we require we can typically complete the process in 7-14 working days. We’ll talk you through each stage and keep you updated so you know when to expect the cover to be in place.

When applying for a performance bond with us, you'll need to give us as much information about the contract as you can. This will help us provide you with a range of performance bond cost quotes specific to your needs.

Documents and information required include:

  • The value of contract
  • A copy of performance bond wording required by the relevant body
  • Expiry date of the bond which will be either the date of Practical Completion of your contract or the end of any defects period

We’ll also need some details about your company since a credit check is part of the process, including:

  • Copy of your latest published accounts
  • If the company’s assets do not exceed the performance bond we might also need details of other companies owned by the same shareholders that could provide support, or details of the personal assets of the Directors

Call the Installsure team on 0207 645 3744 between 9am and 5pm, Monday to Friday. Alternatively send us a message online and we'll get back to you with minimum delay.

The Installsure team is on hand to answer any questions you have about performance bonds or other insurance solutions. Give us a call between 9am and 5pm, Monday to Friday on 020 7645 3744 or send us a message.