Surety Bonds

Surety – Contract Performance and Commercial Bonds

Surety bonds are available to cover different parts or phases over the life of a construction contract. The purpose of
surety bonds are to provide the principal client (project owner) with a level of financial compensation in the event of the default or failure of a contractor under a construction contract.

There are a range of bonds available to contractors to meet a number of contract requirements include:

  • performance bonds
  • maintenance bonds
  • bid bonds
  • retention bonds
  • advance payment bonds, and
  • off-site materials bonds.

Surety bonds are designed for:

  • general builders
  • civil, heavy and specialist engineering
  • manufacturing, and
  • mining.

Contract Bonds

Set up by contractors for the benefit of their customers or potential customers (‘the principal’), Contract Bonds provide security against default or non-performance. When compared with a bank guarantee, they have the advantage of not tying up working capital or lines of credit.

Contract Bonds include:

  • Bid Bonds are submitted with a bid or tender to ensure that your client will actually enter into a contract if their bid is accepted. A Bid Bond also guarantees that a performance Bond will be supplied.
  • Performance Bondssupport the contractor's obligations during a contract period providing security to their customers against default or non-performance.
  • Advance Payment Bonds serve to secure the principal's position where funds are advanced to your client for the purposes of the pre-purchase of equipment or site establishment.
  • Retention Release Bonds provide security to the principal where funds are advanced to your client from the retention fund.
  • Maintenance Bonds secure your post-completion obligations during the warranty or latent defects period, usually 3 to 12 months post-completion.
  • Off-Site Material Bonds cover the principal in respect of goods or materials produced and held off site and paid for by them. The Off-Site Materials Bond responds where the goods or materials are not available when required for incorporation into the contract.

Commercial Bonds

Commercial Bonds cover regulations and commercial contractual obligations and include:

  • Residential Deposit Bonds provide a convenient way to secure residential (home or investment) property without having to release capital.
  • Commercial Deposit Bonds provide a convenient way to secure business (office, industrial or retail) property without having to release capital
  • Lease Performance Bonds issued at the request of a tenant in favour of their landlord and provide financial protection in lieu of a security deposit on a lease agreement.
  • Probate/Transfer Indemnity Bonds provide a fast and inexpensive way to release assets from a deceased estate without having to obtain a grant of probate.   

So call CPR Insurance Services for more information or assistance if you need to obtain any of these Bonds.

Latest News

CPR joins Ausure

We would like to announce to all our Clients, Prospective Clients, Suppliers and Insurers, that Cooper Professional Risks Pty Ltd trading as CPR Insurance Services, will be leaving National Adviser Systems Pty Ltd (NAS) and joining Ausure Pty Ltd as a Corporate Authorised Representative from 9 March 2018.

Fundamentally, there is no difference to you except our Invoices will look a little different, and the Banking details will be in a different name and account number. Everything else at CPR stays the same.

There are a number of reasons we have made this decision, but the primary reason is for what we believe is best for our clients.

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Special offer to CPR Insurance clients

Employsure are providing a FREE Business Health Check to all our clients and gives you the opportunity to receive an analysis of the health and safety requirements in your workplace. Also. Employsure  will review your employment agreements as well as your wage rates helping you to avoid workplace claims.

Ordinarily this would cost you at least $1,250 but because you are a CPR Insurance client, it is free!

It involves the following review for you.

SAFECHECK

A specialist Work Health and Safety Consultant will visit your workplace and carry out:

A review of your business’ current work health and safety policies, procedures and systems to identify areas of concern or non-compliance

Following the review, you will receive a report summarising the findings and the health and safety

Status of your workplace

WAGE CHECK

A Wages Adviser will review your rates of pay and produce a Wage Check report.

The review will be conducted against the industrial instrument applicable

A report will be supplied advising if the wages are compliant and what steps to take to achieve compliance

CONTRACT REVIEW

A Document Consultant will review an employment agreement and provide recommendations.

The review will highlight compliance issues with the Fair Work Act 2009 as well as best practice

The report will make recommendations to achieve compliance and provide protection to your business.

This will remove any areas of potential dispute and risk

So what do you have to lose? Contact us on 07 3123 1137 and arrange 

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