Bonding
At the moment this product is not offered in Czech market.
A customer seeking a contractor for building or engineering jobs needs to be particularly certain that the contractor will carry out the contract to the letter.
It is logical that customers demand a guarantee that their business partner will complete a contract without any hitches.
Euler Hermes via long experience in Euler Hermes Group provides traditional guarantees.
Another situation that may occur is that the contractor has previously only used bank guarantees, but for some reason or other he is unable to take out more credit from banks or he may want to free up room for using other bank products by reducing his credit. A non-bank guarantee is the ideal solution in this case.
Euler Hermes guarantees represent the assumption of the supplier’s responsibility towards its customer (investor).
Types of guarantees offered:
• Bid Bond – a tender is being held and bids must be guaranteed.
• Maintenance Bond – the supplier is obliged to provide a guarantee corresponding to its responsibility for defects during a warranty period.
• Performance Bond – the supplier is obliged to guarantee due performance of a contract .
• Advance Bond – as security on the supplier’s commitment stemming from the customer’s possible demand for refund of an advance payment if the supplier fails to satisfy the conditions of the contract.
• Retention Bond – the supplier is authorised to use this kind of guarantee in place of the retention of a percentage of the price of a contract which the customer would otherwise retain throughout the period of the supplier’s responsibility for defects during the warranty period.
Our advantages:
• thanks to the outstanding international rating and many years’ worldwide experience of Euler Hermes Group, the guarantees take the same form and provide the same legal certainty as guarantees issued by banks
• the insurer’s guarantee does not increase credit levels with banks
• the insurer’s guarantee can free up space for using other bank products
• we can tailor guarantees to suit your customer’s needs
• highly competitive prices and transparency
• flexible administration when drawing up offers and issuing guarantees
• high-quality security enables unlimited coverage depending solely on the supplier’s credit rating.
Standard procedure when issuing guarantees.
(Brochure is available only in Czech)
Česky
Euler Hermes Group
