Performance Guarantee Process
To get the Performance Bond from Bronze Wing Trading L.L.C., please follow the simple process given below:-
1. Firstly, the seller or the contractor submits their PB request in terms of signed SPA or contract.
2. After that, we will review the trade deal between the exporter and the importer or contractor and developer. And also, we will inform the parties about our consent on their request.
3. If approved, we will sign a service agreement with the client. Also, we will inform them about our service charges to proceed further.
4. Once they sign the agreement and pay the service charges, we will start to process their PB request.
5. Further, we will send the MT760 draft to the client for their review. Also, we will request them to pay the PB issuance fee and provide further documents.
6. Once we received the approved draft and issuance fee, we will proceed right away! Further, we will open the Performance Guarantee from our bank account with the European Bank. And this will be issued via Swift MT760. And also, the entire process will not take more than 2 banking days.
Apply For Performance Guarantee
Apply For Performance Guarantee
Performance Guarantee Video
Surety Bond / Performance Guarantee is issued by a bank on their clients’ behalf to ensure the fulfillment of the specified project / contract. This acts as a surety for the contractor / supplier & developer / buyer. It is given in favor of the buyer to assure the goods will be supplied on time. Otherwise, the buyer’s bank can claim this MT760 from the seller’s bank.
In real estate projects, developers always demand a guarantee from their contractors to assure their work as per the contract. So, to become a successful contractor in the construction industry, contractors always require their bank support. Because this enables them to provide different types of bonds to the parties to achieve worthy contracts.
In case, if a client contacts the bank for the issuance of these Bonds, the bank may demand tangible collateral from them. Or else, it needs a cash margin to back up their requirements.
Accordingly, meeting all the demands of the bank seems difficult. That’s why we are here! This is to say, Bronze Wing Trading L.L.C. assists suppliers and contractors to avail performance guarantee without obtaining any collateral from their end.
Thus, to conclude your deal, we provide PB / PG on behalf of you and in favor of your developer from European banks. Further, we meet the client’s request and find the right solution for their need to maximize the profit.
Performance Guarantee for Construction Project
This Guarantee is used as well as in the construction projects. Certainly, a developer requires the contractor to provide PG in favor of them to guarantee their commitment as per the contract. Also, this surety bond assures the completion of work; even in case of a lack of liquidity of the contractor.
A PG MT760 may be claimed on first written demand. This is to say that the principal may or may not require to prove default, in order to claim the payment. Moreover, the PG is issued as a part of their contract. Further, it assures that the contractor will pay the material costs and labor, they are obliged to.
Also, this assures the client, that if the contractor fails to complete their work on the project as per the T&Cs. Then, a new contractor can be hired by the bank with the consent of the client to complete the pending work. At this point, the new contractor will bear the cost first to finish the remaining work on the project. After that, the bank will pay to the new contractor the amount they spent to complete the work.
Performance Bond Value
The performance guarantee covers normally 10% of the contract value. Thereupon, it replaces the tender bid, once the contract is awarded and the PB is issued. Moreover, this bond is always Irrevocable; that means it cannot be canceled or revoked. Also, it can terminate only, once the contractor has fulfilled all their obligations towards the principal party.
Parties Involved in Performance Bond
- Supplier or Contractor
The one who performs the job and also needs to provide the surety to their counter parties.
- Buyer or Developer
The one who hires the contractor or source a supplier and receives the surety.
The bank assures that the contractor / supplier will fulfill the terms as per the contract.
Performance Bond Benefits
For Developers / Buyers:
- Assures contractors / suppliers will adhere to the terms as per the surety bond.
- Serves as a warranty against low-grade work / supply.
- Make contractors / suppliers accept their fault if it occurs while performing the job / supplying.
- Also, it ensures that everyone involved in the project gets paid; even if there any defaults occur.
For Contractors / Suppliers:
- It gives assurance that the contract will be honored.
- It assures the positive completion of the project and also the supply of goods.
- Also, it serves as a surety for the developer and buyer; in case of default.
Performance Bond Cost
The Performance Bond cost includes bank commission, swift charges, and also the basic operating costs. For instance: it includes the charges for credit reports and so on. Further, if you have any queries in regard to the cost, you can send your query and our team will assist you.
Performance Bond Providers
Getting a payment bond seems to be a daunting task; as it blocks a huge cash flow of the company. That’s why, we, Bronze Wing Trading L.L.C. provides PB MT760 from Rated Banks. Therefore, there is no need for you to block any cash funds for the required bond.
By choosing us, you’ll get:-
- Fast and prompt service.
- Deal close in 48 working hours.
- Partnered with rated banks.
- Also, guidance throughout the process of getting MT760.
Are you in the construction field? Gearing up for a new project? Certainly, the project owner may want to see proof; that you’re able to complete the job if assigned. So, get your performance guarantee from us.
We are the trusted trade finance service providers. Further, we will help you to get the Performance Bond – Performance Guarantee or Surety Bond you need within 48 banking hrs.