Performance bond for contractors: key in public contracts

The guarantee for the quantitative, qualitative fulfillment of the contract.

Request an offer

Protection against risks during the implementation period of a public contract

If you work in the building sector (including carcassing and finishing), Coface can help you obtain new contracts while meeting your legal obligations and optimising cash flow.

  • What is it?

    The performance bond is constituted by the contractor (Insured) in order to ensure the contracting authority/entity (Beneficiary) the quantitative, qualitative fulfillment and within the agreed period of the sectoral contract/subsequent contract.

  • Which are the insured risks?

    Actual, direct losses caused to the Beneficiary during the period of validity of the insurance policy and the public/sectoral procurement contract, resulting from those situations in which the Insured, through his sole fault, does not perform his contractual obligations towards Beneficiary upon signing the public/sectoral procurement contract.

  • Why choose it?

    Contributes to securing the procedures in implementing a public contract.

Interested? Ask for a quote online, and we’ll get back to you straightaway - with no obligation

Request an offer

Who are the insured & beneficiaries?

The Insured

Companies registered in Romania or in other states of the European Union or associations of companies registered in Romania or in other states of the European Union.

The Beneficiaries

Contracting authorities, as defined by Law 98 on public procurement 

and

Contracting entities, as defined by Law 99 on sectoral procurement.

Which are the conditions?

  • The insured value may be a maximum of 10% of the VAT free value of the sectoral public procurement contract..
  • Performance bond must be irrevocable.
  • The performance bond must state that the indemnification will be made unconditionally, on the basis of the Beneficiary statement.
  • The period of validity covers both the period of execution of the works and the defects notification period.

Three reasons to choose performance bonds by Coface

This product is Coface's answer and contribution to the need for companies to implement public contracts in safe conditions.

  • Speed and low costs

    The process of obtaining the surety bonds is much faster and has lower costs.

  • Cash-flow protection

    Protect the working capital and liquidities of companies and does not involve blocking of sums of money or other types of assets in the company's patrimony.

  • Operations improvement

    Improve the balance sheet structure and the efficient use of the company's resources for carrying out the operational activity.