What we offer you
Please contact us to find out more about what guarantees and bonds are, and how we can help. We're always more than happy to answer any questions.

Construction guarantees

Bid Bonds

1Bid Bonds (also known as Tender Guarantees) are provided to a Principal on behalf of a client at the time of tendering. Should a client be awarded the contract for which he tendered and then for some reason not start the contract, the Principal would be entitled to call up the Bid Bond to cover the costs of re-awarding the contract, possibly even putting the job out for re-tender.

Advance Payment Bonds

2The Principal advances certain monies to the contractor for work to be completed. This guarantee generally reduces and is set off against payment certificates.

Performance Bonds

3Performance Bonds (also known as Construction Guarantees) are issued in favour of a Principal securing the efficient and final performance of the contractor.

Retention Money Bonds

4During the period of any contract, the Principal generally withholds up to 10% (usually 5%) of the value of every payment made to the client as retention monies to cover any remedial work that may be required during the maintenance period. Holding money back could cause cash flow problems for the client. In these circumstances we would provide a guarantee to the Principal and the Principal would be entitled to call on the guarantee, if there is remedial work to be attended to and the client did not fulfil its obligations.

Maintenance Bonds

5These bonds cover the maintenance period after completion of the contract for any remedial/maintenance work not attended to by the contractor due to the contractor’s default or possibly liquidation.

Unused Materials On Site Bonds

6Prior to any materials being delivered to site or constructed into the works, the contractor could obtain payment for the materials from the Principal. In the event of the contractor not delivering the materials to site or not building the materials into the works, the Principal could call on the guarantee. Our guarantee would not cover theft or damage to the materials.

Development & Reticulation Bonds
7These bonds are used in respect of the development of a township. A township developer is often obliged to deposit with a Town Council an amount of money for the supply and installation of water and reticulation, or electrical installation.

Solvency guarantees

Customs & Excise Bonds

1In the event of a client entering into an agreement with the Department of Customs and Excise for the deferment of liability on imported goods, payments of such deferment duty must be secured by a guarantee.

Customs Rebate Bonds

2These bonds are issued to guarantee that the goods are acquired under rebate of duty and are used in the industry for the specific purpose for which the rebate was issued.

Warehouse Bonds

3These bonds guarantee that the Principal is the occupier of certain warehouses for the storage of bonded goods and that these goods shall be duly exported.

Electricity Deposit Bonds

4These guarantees are furnished to a Principal to stand in lieu of a cash deposit required for an electricity account.

Rental Deposit Guarantees

5These are issued in lieu of the initial deposit required upon rental of a property. Should the client be unable to pay the monthly rental required, the guarantee will be called on and the funds used towards payment of any outstanding rent.

Payment Guarantees

6Payment guarantees are issued in the instance where a seller wishes to obtain a guarantee for the due payment by the purchaser for goods purchased.

Education Guarantees
7Also known as Student Fee Protection Guarantees. In terms of a training institution registration requirements with the Department of Education (DOE), institutions have to lodge a guarantee with the DOE confirming that if an institution is unable to render a course to a student after he has paid for the course, the student has the right to approach the DOE which will thereafter call on the guarantee and reimburse the students. This type of guarantee is provided on behalf of the training institutions.

Court & Administration Bonds

Liquidation/Insolvency Bonds

Where a Company/CC/Individual has been declared insolvent, or application for liquidation has been granted, the Master of the High Court requires the liquidators to submit a Bond equal to the value of the Assets in the Estate, to protect the Creditors against negligent/fraudulent management of the Assets by the Liquidator.

The Executor/Liquidator requesting a Court Bond facility must produce:

  • A detailed and acceptable Curriculum Vitae
  • A statement of personal Assets and Liabilities
  • A certified copy of his/her ID
  • Proof of Professional Indemnity Insurance  and Misappropriation of Trust Fund Cover
  • Certified copies of Degrees/Diplomas

The insured firms/organisations must have adequate Professional Indemnity, including Misappropriation of Trust Funds cover and Fidelity Guarantee insurance cover in place. The rate for Court bonds is set by the Master of the High Court and is currently 0.5% per annum (VAT exclusive).

Facilities are granted on the following basis:

1Individuals with little experience or family estates or named executors of honourable disposition:

R2 500 000

2Small firms of attorneys and chartered accountants (2 to 5 partners):

R10 000 000

3Medium sized firms of attorneys and chartered accountants (5 to 8 partners) and professional liquidators:

R20 000 000

4Large firms of attorneys and chartered accountants (exceeding 8 partners) and professional liquidators:

R50 000 000

5Named firms (any one liquidator):

R75 000 000


A greater facility can be arranged, please contact us to set up a meeting.