Construction Guarantees
Financial protection that moves projects forward
Our Construction Guarantees
Ensure your projects stay on track from tender to completion with our comprehensive range of Construction Bonds and Guarantees.
Builds confidence that the selected contractor will honour their bid and sign the contract.
Reassures project owners of on-time, on-spec delivery – and signals the contractor’s commitment to performance.
Replaces withheld funds with a guarantee, freeing up contractor cash flow while still protecting the project owner.
Enables early project funding for contractors while also safeguarding the owner’s investment until delivery.
Lets contractors get paid for stored materials and gives owners assurance those materials are secured and ready.
Secures the supplier’s right to payment while assuring project owners of reliable, on-time delivery.
What is a Construction Guarantee?
Construction projects are high-risk, high-value ventures. Our industry-leading Construction Guarantees offer the financial protection to keep projects progressing, without unnecessary risks or delays.
They’re like a financial safety net. If something goes wrong (for example, a contractor backs out, materials aren’t delivered or work doesn’t meet quality standards), our guarantees step in to cover the cost and keep things on track.
PCBS Construction Guarantees are underwritten by industry experts and tailored to meet the unique demands of your project.
Why choose a PCBS Construction Guarantee?
- Protects your project from delays, defaults and disputes
- Replaces cash securities with smarter financial instruments
- Builds trust between all parties in the contract chain
- Ensures compliance with project terms and timelines
- Improves liquidity and cash flow for contractors and suppliers
- Offers financial protection against non-performance
- Builds contractor credibility
- Save time with faster contracts and smoother approvals
How it works
- Apply: Complete a simple application form with your project and financial details.
- Risk assessment: Our underwriters review your submission and, if approved, provide terms.
- Guarantee issued: On acceptance of terms, your guarantee is issued and shared with the beneficiary.
- Ongoing support: Your designated underwriter is available for guidance throughout the project lifecycle.
Turnaround times
- Quotes delivered within 24 to 48 hours of receiving full documentation
- Draft guarantees issued within 24 to 48 hours of document submission
- Original guarantees ready within 24 hours of payment confirmation
Construction Guarantee FAQs
Is PCBS authorised to issue Construction Guarantees?
Yes, we’re a licenced Financial Services Provider (FSP #47996) and are authorised to issue Construction Guarantees.
Can I apply if I’ve never had a guarantee before?
Absolutely. We work with first-time applicants and seasoned contractors alike.
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.
How much does a Construction Guarantee cost?
A Performance Guarantee is usually 5% or 10% of the contract value.
What is the guarantee policy period?
The minimum policy period is 6 months, and the maximum period is 36 months (including a maximum maintenance period of 12 months).