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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
What is a Surety or ‘Guarantee’ bond?

A surety bond is sometimes referred to as a ‘guarantee bond’, or ‘contract guarantee’. Guarantee bonds are provided by Guarantors (an Insurance Company), to the Employer or Beneficiary, on behalf of the Bonded principal, or Contractor. The bond will usually guarantee the performance of the Contractor, under the contract in place between the Contractor and […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
How are construction bond premiums calculated?

When a contractor obtains a bond, it demonstrates financial stability to their employers, especially during challenging economic conditions. Now more than ever, the need for financial stability and security is paramount and the demand for bonds has increased. A surety broker will offer advice and guidance on bond wordings to ensure your needs and best […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
What are the advantages of using a broker to arrange your construction bond?

As the construction industry continues to experience challenging economic conditions, the demand for construction bonds has never been greater. Long-term issues such as cost inflation and delays to both housebuilding and infrastructure projects have led to more insolvencies and increased financial scrutiny across the construction sector in 2023. The cost of construction materials and energy […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
What types of bond are available?

There are a number of different types of bond available within the UK Construction industry. These include, though are not limited to: Performance bonds, Advance Payment bonds, Retention bonds, Section bonds, Bid bonds, NHBC bonds and Warranty bonds. Section bonds are also known as ‘highways’ or ‘sewer bonds’ and are usually in favour of a […]

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Managing and facilitating bonds | Kerry London Limited
Monday 27th November 2023
How is a bond calculated?

Performance Bonds are normally 10% of the contract value. Retention Bonds are usually between 2.5 and 5% of the contract value, and Advance Payment Bonds are a fixed sum, depending on the advance payment value. The bond wording can stipulate that the amount reduces when certain milestones are achieved. For example, upon the issue of […]

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