SURETY BONDS FOR PUBLIC WORKS

Bid bonds or provisional guarantee follow through with the maintaining of the offer made by the policy holder when they bid in public tenders for the contracting of a particular work or service on offer by the administration. The amount of the bonds is usually between 2% and 5% of the base tender budget and based on the solicitation document of the contract to be tendered.

Performance, compliance or definitive bonds are required when the policy holder has been assigned a public work or service and they guarantee the proper execution of these in the agreed-upon conditions, as well as the guarantee period stipulated. The amount of these bonds is normally between 4% and 5% of the assignment budget.

Stocking materials bonds ensure that the material accrued will be integrated in the construction project.