A Spanish Contractor Availed Performance Guarantee in Construction Contract From BWT
The Contractor runs a privately owned firm with a history of completing millions of dollar projects. Recently, they were awarded for a project to build a high rise residential building in Spain. Bronze Wing Trading helped the Spanish Contractor to avail of this lucrative project by providing a Performance Guarantee in Construction.
The Client’s Synopsis
The Developer in Madrid relay a tender for their high rise building project. The contractor quoted their bid and won the project. But to sign the contract and to enter into the project; the project owner asked the contractor to provide Performance Bond in their favor. So, they started looking for ways to avail MT760 on their behalf from rated banks.
The Challenge: Avail Performance Guarantee in Construction Contracts
The Contractor wrote a request to their bank to avail Performance Bond. Since the contractor exhausted their credit lines; the bank declined their request. Then, they approached private lenders and other sectors to avail Surety Bond. But, they asked for a certain percent of the total project value to provide the same on their behalf. But it not possible for them at that time. So, they looked out for other options and started surfing online.
While searching on Google, they came across a document that focused on the Performance Bond Providers published by us. Further, they read this document and studied the process. And then they came to us to acquire a surety bond for the project they had awarded.
Our Scope of Work: Issued Performance Guarantee in Construction
The Client contacted us with their contract terms and other legal documents. We studied their document and approved their request. The Client visited our office to sign the agreement and to pay the admin fee. Further, the Client and our CEO had a fruitful discussion. And, then they both sign the service agreement and paid the charges. Once it’s done, we blocked our bank limit; as per the deal and structured their bond. We sent the bond for their approval. The client approved the draft and paid the issuance fee. After receipt of the payment, we instructed our bank to issue the Performance Bond; in favor of the developer. And our bank issued the PG to the developer’s bank via Swift MT760.
The Final Result:
Once the project owner received the bond, they both signed the million dollar worth of the project. As per the contract terms, the client started work on the project; by assuring that, they will complete the project within the set time limit. The Client expressed their thanks to us by writing a review on our page. And, they stated that they will refer our services to all who are in need of trade finance.
This is how we helped the contractor to get the building projects by providing the bond on their behalf.
If you’re in need of such type of Performance Guarantee in Construction; contact us today or apply online!
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