Surety Bonds are a cost effective alternative to bank guarantees that allow you to meet contractual or commercial obligations without tying up assets. Bonds are a widely accepted form of contract security and are typically used in construction, building, engineering, mining, and the services industries.
CRM Brokers has a specialised team ready to assist you in arranging the most appropriate surety bond. Our experience in working alongside specialist underwriters will provide you with an understanding of the complexities surrounding the application of a bond.
CRM Brokers can assist you with choosing the right bond, depending on your needs. The various contract and commercial bonds available include…
Contract Bonds
Are a range of bonds designed to cover contractors obligations in areas such as performance and maintenance.
Bid Bonds – allows you to enter into a contract if a bid is accepted. A bid bond will also guarantee a performance bond will be supplied.
Performance Bonds – also known as a contract bond, provides a guarantee of the satisfactory completion of a project by a contractor.
Advance Payment Bonds – protection of advance payments made to contractors in order to pre-purchase equipment or site establishment.
Release Retention Bonds – covers funds transferred to a retention fund.
Maintenance Bonds – covers your obligations during the warranty period.
Off-site Material Bonds – provides security against the non-delivery of goods or materials produced and held off-site.
Commercial Bonds
Designed to assist in purchasing property.
Residential Bonds – allow you to secure a home or investment property.
Commercial Bonds – allow you to secure an office, industrial or retail property.
Benefits of Surety Bonds include…
Improving your balance sheet and liquidity
Unsecured; no tangible asset or collateral required
Works alongside your existing bank facilities
Risk mitigation; less-exposed to bank credit decisions or reviews
Who can qualify for a bond?
- Typically a turnover in excess of $20 million
- Must have a minimum net tangible worth of $1m
- Strong industry experience, track-record and reputation
- Positive cash flow
- Positive working capital
For more information on Surety Bonds, please contact CRM Brokers on 1300 880 494 or Make an Enquiry.
