Surety Bonds

Surety bonds are established by contractors for the benefit of their clients or potential clients and provide security against default or non-performance.

Contract Bonds are an alternative to bank guarantees. They provide third party financial protection, generally without encumbering assets or established credit lines and include;

  • Bid Bonds
  • Performance Bonds
  • Advance Payment Bonds
  • Retention Release Bonds
  • Maintenance Bonds
  • Off-Site Material Bonds

MBA Insurances Services utilises the services of leading underwriters QBE & Asset Insure when applying for Surety Bonds.

Guidelines for eligibility;

  1. Minimum company turnover of $20 million (over the previous three years trading) or $1 million bond facility requirement.
  2. Dollar for dollar cover in terms of net tangible worth versus bond facility size. ie: Balance Sheet Net Tangible Assets of at least $1 million dollars.
  3. Details of the ownership structure and financials for the entire group of companies / trusts involved with the applicant.
  4. Owner / Shareholder guarantees are mandatory with facilities for privately owned entities of this size and nature.
  5. Positive cash flow, working capital and retention of profits within the business.