Performance Bond Insurance

Ready to make a difference

Performance Bonds without limits or loss

A contract guarantee bond provides an alternative form of financial guarantee to support construction related contracts.

There are many different types of bond to suit the numerous different financial obligations that can be placed on contractors or subcontractors as part of their business. We can explain them all, and find the perfect solution for your business.

Types of bonds include:

  • Performance bonds: A financial guarantee linked to completion of a project. These can be arranged on an individual or agreed limit/facility basis
  • Retention bonds: An alternative to your main contractor withholding a percentage of the contract value
  • Road and sewer bonds: These bonds guarantee the completion of roads and sewers to enable them to be adopted by the relevant authority (e.g. Sections 38,104,106 & 278 agreements)
  • Advance payment bonds: A guarantee against deposits in advance of receipt of goods or services if a contract cannot be fulfilled. 

Why use Performance Bonds?

Many contractors and subcontractors rely on their bank to provide construction bonds and financial guarantees. Unfortunately, banks generally require real assets as security or reduce the contractors’ banking facilities in return for surety provision. This can lead to reduced working capital and restrict the ability to secure new contracts.

A contract guarantee bond will still be subject to certain terms and conditions, but will cover all ABI or similar bond types. This will afford contractors rate certainty at tender stage and save time administratively, allowing cost to be passed to the beneficiary quickly and accurately.

We have proven experience in the construction industry, and the contractual guarantees required.

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What to do if you are experiencing financial difficulties

We recognise that the current economic conditions are putting pressure on many households and businesses. At Howden, we are committed to finding ways to assist our customers who may require additional support during these times.

If you’re currently facing financial difficulty, please speak to us about your insurance policies by:

-contacting your Howden Service Team
-calling Howden on 020 7623 3806
-using the enquiry form