Performance Bonds

Performance Bond:

Nationwide Sureties are the leading provider of Performance Bonds in the United Kingdom. We source only the best and most highly competitive quotations from multiple providers specific to your project. Ensuring the best possible costs and terms for you.

• Competitive Premiums
• Access to the whole Market
• Quick and Simple Application Process
• Expert Knowledge of Surety Market
• ABI, On-Demand, Adjunction or Hybrid wordings considered

What is a Performance Bond? 

A Construction Performance Bond is a guarantee, typically with a value of 10% of the contract price (though this may vary in some cases). It is designed to offer protection to the employer/ beneficiary against any losses and/or damages sustained as a result of the contractor failing to perform its contractual obligations.

How do Performance Bonds work?

A Construction Performance Bond is a tripartite agreement and is designed to offer some protection to the beneficiary in cases were the contractor fails to perform the contract. The reasons for such failure could be insolvency, default or any other actions as defined in the contract or bond wording. In the case of a dispute, the first action would be for the contractor/sub-contractor to remedy the issue, if that fails and a call is made on the bond the surety will investigate the matter, if the claim is valid the damages would be established and ascertained in accordance with the contract.

What we require:

Provide us the details of the Contract which is the subject of the Performance Bond requirement, including Bond amount and period for which it will be required, together with a completed application form plus:

• A copy of the Performance Bond wording (If non specified we may be able to suggest a wording)
• A copy of your last published accounts (if you are part of group then consolidated group accounts as well)
• A copy of your latest management accounts (up to the nearest quarter)

On receipt of this information, the Performance Bond application will be submitted to our panel of underwriters for their consideration. Our underwriters will review the applicant’s financial strength, their historic trading performance comparative to the underlying obligations of the Bond. Upon successful underwriting, we should be able to offer competitive non-binding indications of terms, as quickly as possible.

Once the applicant has accepted our terms and provided any additional information requested, we will send out the security documents for execution (such as deed of counter indemnity) and an invoice for the premium.

Following receipt of the completed paperwork and premium, we will issue the Performance Bond