Bonds and Suretys

Our surety bonds for construction and engineering contracts are commonly issued in favour of local authorities, government departments, housing associations and large public companies.

Contract surety bonding protects a project owner from financial loss should the bonded contractor fail to fulfill the contract in accordance with the terms and conditions.

Performance bonds are usually packaged with payment bonds. A performance bond is common place in most commercial contracts particularly construction.

Obtaining Performance Bonds and Guarantees from traditional sources is sometimes difficult, time consuming and frequently ties up working capital. Their advantage is they do not impact on either the suppliers’ or contractors’ overdraft facilities

Types of Bonds include:

  • Bid Bond

Is a bond which provides financial assurance that the bid has been submitted in good faith, that a contractor will enter into a contract at the amount bid, and will provide the appropriate performance and payment bonds. These bonds are used by obligees (project owners) to pre-qualify contractors submitting proposals.

  • Performance Bond

A performance bond guarantees performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds. Bonding ultimately aims to protect the project owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

  • Payment Bond

A payment bond covers payment of subcontractors, laborers, and materials suppliers associated with the project. Payment bonds are issued for the protection of those supplying labor or materials to a particular bonded project.

  • Maintenance Bond

A maintenance bond guarantee upkeep (maintenance) of the completed project for a specified period of time after completion. These bonds protection from defective workmanship and/or materials.

If you would like to discuss our bond options further or to obtain a quotation, please contact Eimear Lane directly on 01 632 1314 or email eimear@mcgivernflynn.com