Construction Guarantees

Bid Bond

A guarantee that a contractor will complete the work if awarded a contract they’ve tendered for.  

Our Bid Bonds assure project owners that contractors are financially stable and capable of fulfilling their contractual obligations.  

After being awarded the tender, the winning bidder replaces the Bid Bond with a Performance Bond to guarantee job completion according to the plans and specifications.   

Benefits of a PCBS Bid Bond:

  • Prequalifies the contractor by proving they have the required competence and financial capacity to complete the project.
  • Provides a safety net for unforeseen complications preventing the winning bidder from entering into the contract. 

Apply for a PCBS Facility or Guarantee in 2 steps:

  1. Download and complete the relevant application form
  2. Email the completed form and all supporting documents to your broker or to info@pcbs.co.za
Bid Bond Facility
Download
Bid Bond Guarantee
Download

FAQs

A Performance Guarantee is usually 5% or 10% of the contract value. Get a personalised premium estimate for your guarantee in seconds.

  • 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. 

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. 

The minimum premium for a PCBS guarantee is R5 000.00 (excluding VAT and fees).  

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  

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