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

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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