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Managing and facilitating bonds | Kerry London Limited
Thursday 28th March 2024
What is the difference between a guarantee bond and a surety bond?

Surety bonds and bank guarantees ensure a contractor’s performance and financial commitments on a construction project. They are similar, but there are some significant differences: Why are bonds so popular now? Bonds are more widely used when economic conditions are challenging because they offer all parties greater financial security in a business deal. A bond […]

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Managing and facilitating bonds | Kerry London Limited
Thursday 28th March 2024
What is the duty of a surety?

A surety is a bond that guarantees to pay the cost of completing a contracted construction project if a contractor is unable to do so. A surety bond is a three-party agreement arranged by the contractor with an insurance broker to guarantee completion of a contract. Surety bonds have traditionally been used in local authority […]

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Managing and facilitating bonds | Kerry London Limited
Thursday 28th March 2024
What is the difference between a guarantor and a surety?

Guarantors and surety are the two most common forms of financial protection used to ensure construction projects are completed. From a legal perspective, both guarantors and surety are similar, but in practice, they offer different benefits. Banks act as guarantor providing the money (a bank guarantee) to complete a construction project when the contractor cannot […]

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Managing and facilitating bonds | Kerry London Limited
Thursday 28th March 2024
What is the advance payment guarantee on a performance bond?

An advance payment bond guarantees the completion of commercial construction contracts and prompt delivery of advance payments. The bond guarantees reimbursement of advance payments used by a contractor to purchase essential materials and machinery needed to start work onsite. Why do employers ask contractors to arrange advance payment guarantees on a performance bond? Employers ask […]

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Thursday 14th March 2024
What do performance bonds cover?

What is a performance bond? Performance bonds are a type of financial guarantee. They are issued by a bank or insurer, on behalf of a builder or contractor, to the other party in a project contract (i.e. the client). The bond guarantees a certain amount of money to the client if the project cannot be […]

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