Under this portfolio, Askari has a variety of surety bonds to meet the requirements of various business concerns entering into enterprising contractual agreements with each other. Some of these are, as under;
To guarantee the full and due performance of the contract with respect to the plans and the specifications, Askari Performance Bond is just the right option. Askari Performance Bond will ensure the payment of the bond amount to the owner on demand, in case the contractor fails to abide contractual terms and conditions. Our performance bond, based on the PEC (Pakistan Engineering Council)’s approved wording, which is a specific requirement of majority of construction contracts, is available on most economic rates and terms. We also offer bonds on specific wording as may be required by the unique contractual relationship between any two parties.
In case you are pre-financing a contract, you may secure the repayment of the advance through Askari Mobilization Advance Bond. The owner is covered, for the amount outstanding at that time, against the contractor’s failure to fulfill their obligation. Mobilization Advance is the amount of money that is issued in advance to the contractor to start work on the project. Since this is an advance, the party advancing it needs some assurance that it will not be willfully misappropriated by the contractor and this they ensure through a Mobilization Advance Bond. In case of any default in proper utilization of the advanced money, the bond is called by the principal and it pays the amount that has not been properly appropriated by the contractor.
Askari Retention Bond ensures that the contractor properly completes the activities required of them under the contract. Full payment for goods or services procured by the principal is rarely made on completion of the contract as some portion is retained on account of maintenance or warranty period. A retention bond enables a contractor to get all his payment released before the completion of this period as in case of any defective performance or services, the principal can call on the retention bond.
Askari Supply Bond is issued for contracts to supply materials, goods, machinery at a specified time and place. Askari Supply Bond will ensure the payment of the bond amount to the owner on demand, in case the contractor fails to abide contractual terms and conditions. Supply bonds are used to ensure continuity and availability of required goods and services during the tenure of any project or contract. Here again the relationship is that of a principal, (a party requiring some goods or services) and the supplier (a party promising to supply theses goods and services at appointed time and in required quantity). Failure by the supplier to deliver on time could cause financial loss to the principal and this contingency is secured through a supply bond where insurers act as a surety for the supplier of goods and services.
Askari offers a Bid bond that is essentially the requirement of open tenders and the participating contractors/suppliers have to furnish it as a surety so that some compensation is available to the principal should the selected bidder back out of their committed offer when the tender is awarded to them.