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As your local provider of Performance Bonds in Nuneaton, we are able to offer highly competitive quotations on the best possible terms
Employers frequently ask for Performance Bonds so that they will receive compensation as the consequence that your company turn out to be insolvent or does not do the works according to the contract. Performance bonds is a bond where Needham Insurance will cover the losses and damages suffered by an Employer in the event of non-performance by a contractor. The release of the performance bond can also occur if the contractor doesn’t follow the agreed specification on the build and compensation is required for any losses that result. A performance bond can be either ‘on demand’ or ‘conditional’
- On demand bonds are an amount of money set out in the bond immediately on demand in writing without needing to satisfy any preconditions whatsoever (including establishing the contractor’s liability) unless the demand is fraudulent.
- Conditional bonds require that the client provides evidence that the contractor has not performed their obligations under the contract and that they have suffered a loss as a consequence.
At Needham Insurance our expert team are on hand to help you with all your performance bond enquiries. If you need any help, please contact us on 02476 326213
Frequently Asked Questions
What is the cost of performance bonds in construction?
Performance bonds are typically 10% of the contract value.
When would you need a performance or contract bond?
Construction performance bonds are often required in tenders for commercial, Local Authority contracts and real estate development.
If you’re bidding for a construction job, you maybe asked to provide performance bonds as a guarantee for the competition of the project.