Protection against contractors’ and service providers’ inability to fulfill contractual obligations
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High value contracts, whether relating to construction projects, information technology installations, bonded goods or other services, represent high risks for those financing them. The implications of the project not being completed on time or not at all can spell disaster for the companies involved when large sums of money are at stake.
AIG provides surety bonds to protect companies against these issues, as well as customs and other non-contract bonds. These guarantee that funds are available in the event that a company is unable to fulfill its contractual obligations.
Clients may require contractors, engineers and service providers to protect their own clients, both public and private. Public sector funding for major international infrastructure projects may require that the financers are protected against the risk of non-completion of the underlying contract. In turn, the complexity of such projects sometimes means that the joint venture partners have to cover themselves against the failure of their specialist partners.
Our experienced teams work closely with our clients, conducting financial health checks before establishing surety bonds facilities. As speed of arrangement is sometimes critical, we have the ability to issue bonds in the UK and overseas at very short notice.
Multinational companies with a minimum tangible net worth of GBP 30m and a bond facility requirement in excess of GBP 10m.
Target Market Sectors: Construction & Engineering, Infrastructure, Support Services, Transport, Telecoms, Renewable Energy, Oil & Gas.