Are in respect of construction and supply items and are guarantees to owners of the projects (the Principals) on behalf of the contractor/supplier to pay up to the bond value should the contractor default in carrying out the job, Bid, Performance and Advance Mobilisation Bonds come under this type of bond.

Bid Bond
Is issued/granted when one is to tender for a project. The bond guarantees the owner of the project (principal) that the Bidder will remain in the bidding process until the project (contract) is awarded.

When the contract is awarded and the guaranteed person does not win the contract, the bid bond becomes void.

In the event where the bidder wins the contract, the guarantor ensures that the bidder signs the contract, the guarantor is called upon to pay the bond value guaranteed.

Performance Bond
is issued to persons who have been awarded the contract. It is a guarantee to the principal that the contractor/supplier will perform the project according to specification and within the given time.

Advance Mobilisation
is granted when the principal wishes to advance an amount of money to the contractor to mobilize resources to work on the project. The bond is an undertaking to the owner of the project to refund monies advanced to the contractor should he (the contractor/supplier), after collecting the mobilization fund, default in the performance of the project.