Insurance of construction guarantees

Insurance of construction guarantees is effected as a security (collateral) to Insured (Client), guaranteeing that he will suffer no losses if Policyholder (Contractor) fails to fulfil his contractual liabilities (or the ones set by the tender regulations) including those concerned with his insolvency.

Four kinds of guarantees are available:

Tender guarantee –amount provided by the auction regulations is guaranteed in cases, when Policyholder (tender participant) after the winning of auction refuses to sign construction contract, changes conditions of his offer during the period of validity of offer, or cancels his offer.

Pre-payment (advance payment) guarantee – the actual losses are covered if Policyholder, after receiving the pre-payment from the Insured (client or contractor), fails to perform works for the amount of pre-payment by the deadlines set in the construction contract.

Performance guarantee of works (contracts) – the actual losses are covered within the limits of construction contract if Policyholder has not performed works defined in the construction contract.

Guarantee of the guarantee period – the actual losses are covered within the limits of construction contract if Policyholder has not rectified deficiencies discovered within the guarantee period.