Protection against contractors’ and service providers’ inability to fulfill contractual obligations.
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.
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.
Surety Bonds provide protection to clients, both public and private, against contractors’ and service providers’ inability to fulfill contractual obligations, usually as the result of financial failure or technical problems.
At AIG Surety we work with those contractors and service providers to mitigate those risks and concerns and guarantee performance. 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.
Cover & Bond Types
Performance, Advance Payment, Release of Retention and Maintenance bonds, and in the US, Labour & Material Payment, Supply and Bid bonds.
Specialist bonds required for large complex infrastructure projects where AIG has driven the development of standard wordings.
Customs / Duty Deferment, Travel (ABTA & IATA) and in the US, License and Permit bonds.
Individual bond limit: USD80m / GBP50m.
Aggregate facility limits: USD500m/ GBP350m.
Duration: Not in excess of 84 months (7 years) anticipated duration.
Who is it for?
Construction, Infrastructure, Support Services, Transport, Telecoms and Renewable Energy: investment grade companies with regular bonding requirement of $50m min, Turnover over $750m, well capitalised balance sheet and a tangible net worth of $80m min. UK & European companies with international operations, particularly in North America and Latin America and banks looking to risk share.