Contract Bonds
Several clients require a guarantee from contractors as part of the various calls for tender processes or as an essential condition of several contracts which are awarded. These guarantees are required most frequently in the construction sector, but may also need to be provided in other sectors.
The required guarantees can take several forms, including in particular:​​
certified check
bank letter of credit
bonding
What is Bonding?
Bonding, in short, the commitment made by a person to ensure compliance with the obligations of another person towards a third party. This is an endorsement on the part of the guarantor of the obligations incumbent on the guarantor company. The main types of documents that are requested by clients from companies that have access to a bond facility are as follows:
The Advantages of Being Bonded
How to Obtain Security?
In terms of suretyship, insurers who act as Surety are based on a specific risk in order to establish a file. Just like a bank that wishes to grant you credit facilities, the guarantor wants to know the financial health of your company and its shareholders.
The surety also wants to ensure that the contractor has the expertise, reputation and skills necessary to carry out his various projects. It is also important to know if the latter is strong enough to cope with a loss on a project or if he has the credit facilities necessary to finance his activities. Each guarantor uses their own underwriting criteria, but several guidelines are common.
Other elements can also be considered depending on the sector of activity, the type or the scale of the projects on which a contractor wishes to bid. These same elements also come into play when it comes to establishing the conditions of a file or making the decision to endorse an exceptional project for an entrepreneur.
In short, the conditions that will be offered will depend on a set of factors. The business relationship and trust between a surety and a contractor is at the heart of the decisions taken when it comes to authorizing a large bond application.
Why Choose Cautionnement Expert?
Our company stands out by dedicating its activities exclusively to Surety Bonding. We therefore have the expertise and skills to fully understand your needs. Our team will analyze the financial situation of your company before presenting your file to a guarantor and will be able to help you highlight the specificities specific to your company which will present it in its best light in the eyes of a guarantor.
Our team will also support you to ensure that the relationship of trust between you and the guarantor develops harmoniously to be certain that the conditions attached to your file evolve organically and that they are the best based on the market. Our diversified clientele includes a pool of entrepreneurs and several comparisons which allow us to obtain optimal conditions.
Beyond understanding the elements specific to your business, our financial analysts from diversified sectors will also be able to support you on a daily basis and have a deep desire to act with you as a privileged advisor to support you in your development projects, and growth.
Whether it's to help you understand the implications of a quote or a project on your guarantee facilities, to support you in the context of an intergenerational business transfer or to support you when it comes to obtaining a bond for an exceptional project important to your company, our analysts can advise you!
Why Cautionnement Expert?
By doing business with Cautionnement Expert, you will benefit from, among other things, the following advantages:​
In-depth Knowledge of the Construction Field
Multidisciplinary Team Specialized in Surety Matters
Complete Internal Financial Analysis of the File
Knowledge of Insurer Underwriting Standards
Negotiating Power with Insurers
Advisory Role to Meet Your Bonding Needs, and Even More!