A bond is usually contained in a document given by a third party in support of the obligations of another party, containing a promise to pay money immediately or on a future date. It thereby provides an assurance to the beneficiary that the contracting party will perform its obligations, and security if it does not.
Your Business Partners may ask you for bonds and guarantees to be certain that you will perform your contractual obligations. Bonds facilitated by AP&L gives your Partners the necessary security to start lasting and confident business relations. The categories of bonds we are able to facilitate include:
- Bid Bond
A bid bond is a type of construction bond that protects the Owner or Developer in a construction bidding process. It is a guarantee that you, as the bidder, provide to the project owner to ensure that if you fail to honor the terms of the bid, the owner will be compensated.
- Performance Bond
A performance bond is usually issued by a Bank or Insurance Company to guarantee satisfactory completion of a project by a contractor.
Performance bonds are designed to ensure that the contractor delivers goods or performs services in accordance with the terms of the contract. If the contractor fails to perform the contract, it is likely that the employer will suffer a loss, usually because of delay or because the buyer is obliged to pay a higher price to acquire the goods or services elsewhere. The Guarantor thus undertakes to pay to the employer a sum of money if the contractor fails to perform the contract.
- Advance Mobilization Bond
Advance Mobilization bonds manage the risk of the contractor’s failure to earn the whole of any advance payment from the employer by failing to provide goods and services to an equivalent value. The failure may result from the contractor’s insolvency, fraud or default through using the advance payment for another purpose. Such bonds usually contain a reduction clause, whereby the amount of the bond reduces in accordance with monthly certificates until the certified value of work done exceeds the advance payment.
These are a guarantee to CEPS (Customs Excise and Preventive Service) acting on behalf of the Republic of Ghana, that the insured will pay all duties due on imported/exported goods. Some of these bonds include.
- Security or Warehouse Bond
- Removal Bond
- Temporary Importation Bond
- Re-Exportation Bond
- Transit Bond
- Transshipment Bond
- Exportation Bond
- Customs House Agent General Exportation Bond
Other Bonds are:
- Retention Bond
- Suppliers Guarantee
- Credit Guarantee
Talk to us today for further information and advice.