Construction Guarantees
Advance Payment Guarantee
Security against the risk of contractors defaulting on contracts after receiving an upfront payment to purchase lead items for the job.
Our Advance Payment Guarantees ensure project owners are refunded the amount advanced to contractors who subsequently fail to fulfil their contractual obligations.
This product supplements Performance Guarantees
Benefits of a PCBS Advance Payment Guarantee:
- Funds the contractor to purchase the project’s lead items, such as materials, equipment or machinery.
- Protects the project owner from losing their payment if the contractor defaults.
Apply for a PCBS Facility or Guarantee in 2 steps:
- Download and complete the relevant application form
- Email the completed form and all supporting documents to your broker or to info@pcbs.co.za
FAQs
How much is a Performance Guarantee?
A Performance Guarantee is usually 5% or 10% of the contract value. Get a personalised premium estimate for your guarantee in seconds.
What is the turnaround time for guarantees?
- PCBS prepares a guarantee quote within 24 to 48 hours of you submitting the required documents.
- A draft guarantee is ready 24 to 48 hours after you’ve submitted the required documents.
- An original guarantee is issued 24 hours after receipt of your proof of payment.
What are the most common Construction Guarantees?
The most common Construction Guarantees are Performance Guarantees, Retention Guarantees and Advance Payment Guarantees.
- Performance Guarantee: a contractor’s financial commitment to meet defined performance standards.
- Retention Guarantee: financial protection against defective work for a certain period after project competition.
- Advance Payment Guarantee: ensures the project owner is reimbursed if the contractor fails to perform after receiving an upfront payment.
What is the minimum premium?
The minimum premium for a PCBS guarantee is R5 000.00 (excluding VAT and fees).
What are the minimum and maximum guarantee policy periods?
The minimum guarantee policy period is 6 months, and the maximum period is 36 months (including a maximum maintenance period of 12 months).
Protect your projects fast
Our quick turnaround times ensure you can confidently start your projects within days of applying for PCBS guarantees and facilities.
24 to 48 hours*
For quotes
24 to 48 hours*
For drafts
24 hours**
For original guarantees
*Once all required documents have been received
**On receipt of proof of payment