- Construction Bonds
- types of surety bonds used by stakeholders in construction projects to protect against disruptions or financial loss due to unforeseen failures to complete projects or to meet contract specifications.
Ten bonds, one guarantee
Surety against default on construction, customs duty and goods in bond.
Bonds and guarantees
Ten ways to guard against default
From construction contracts to customs duty and goods in bond.
Included coversEvery bond, in full
All ten surety and guarantee instruments Sanctuary writes.
- Advance Payment Bond
- taken when a client agrees to make an advance or down payment to a supplier, to secure the payment against default by the contractor.
- Performance Bond
- a surety bond issued to guarantee satisfactory completion of a project by a contractor.
- Bid Bond
- issued as part of a supply bidding process by the contractor to the project owner, to guarantee that the winning bidder will undertake the contract under the terms at which they bid.
- Retention in Lieu Bond
- protects the customer after a job is finished by guaranteeing that the contractor will carry out all necessary work to correct structural or other defects discovered immediately after completion, even if full payment has already been made.
- ZIMRA Bonds
- surety and guarantee bonds that ensure protection against unforeseen failures to honour duty obligations.
- Agents Bond
- a good will bond required by ZIMRA, a guarantee given to a forwarding and clearing agent who handles goods on behalf of other companies, called up on any default of duty payment.
- Application for Temporary Importation Privileges (ATIP) Bond
- a guarantee lodged against the exceptional importation of goods that must return to the country of origin in the same state, for example special equipment hired from outside Zimbabwe for a once off project.
- Removals and Transit (RIT/RIB) Bond
- guarantees for imported goods destined for another country, passing through the borders of Zimbabwe without payment of duty.
- Warehouse Bond
- guarantees that apply to a bonded warehouse, which could be a building, an installation or an area licensed to store goods without payment of duty.
Where these bonds work
Three real settings, the same ten instruments above.
- Construction projects
- performance, bid, advance payment and retention in lieu bonds sit behind the contracts that get a project built and finished.
- ZIMRA duty and customs
- ZIMRA bonds, agents bonds and ATIP bonds guarantee duty obligations on imported goods and equipment.
- Goods in bond
- removals and transit bonds and warehouse bonds cover goods moving through Zimbabwe, or held in a bonded warehouse, without duty paid.
Get covered on the contract
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