Performance Guarantee
When a contract is awarded, a performance guarantee normally equalling 10% of the contract value is required. This guarantees the performance of the contractor from the commencement of the contract up to completion.
Why choose Blenheim for your construction guarantees?
- Specific expertise in raising performance guarantees from leading insurers which are approved by all employers in South Africa.
- FREE Professional Advice for all your construction guarantee queries by an experienced and knowledgeable team.
- FREE Letter of Intents to ensure you are always one step ahead in your tender applications.
- All draft and original guarantees issued within 24 – 48 hours*
- Immediate Guarantee Exposure reports generated via our tailored made software for your convenience.
- Dedicated account manager assigned to you, to ensure a personalised service.
- Timely and hassle-free collateral reimbursements.
- No annual fees.
A quote takes between 24 – 48 hours to finalise, subject
to all information being received.
It depends on the strength of your financial statements.
Premium can be between 1 to 3.5% ex vat paid upfront,
pro-rata, per annum. The minimum invoice period is for 6
months.
Here is an example and is for illustration purposes only. Let’s assume you have won a R5,000,000 project requiring a 10% performance guarantee of R500,000 for 11 months. We will further assume that you qualify for 2% ex vat premium. The cost would be R500,000*2%/12*11 = R9,166.63 paid upfront and once-off.
Here is an example and is for illustration purposes only. Let’s assume you have won a R5,000,000 project requiring a 10% performance guarantee of R500,000 for 11 months. We will further assume that you qualify for 2% ex vat premium. The cost would be R500,000*2%/12*11 = R9,166.63 paid upfront and once-off.
It depends on the strength of your financial statements.
Collateral can be anywhere between 0 – 10% of the
guarantee value. The average in the market is 10%. On
successful cancellation of the guarantee your collateral
will be reimbursed with any interest accrued.
Blenheim has specific expertise in raising
insurance-backed guarantees from leading insurers. The
insurers with whom we deal are reputable and accredited
with all employers in South Africa including all
municipalities, ESKOM Ltd, Transnet SOC Ltd and blue-chip
listed entities.
A quotation usually takes 24 – 48 hours to finalise,
subject to all information being received and, with all
the correct documentation completed and information
submitted, the facility can be put in place within four to
seven working days.
With the facility in place, a guarantee is issued within 24 to 48 hours. Your facility can then be used for all your future guarantees up to a prescribed facility limit and multiple guarantees can be issued.
Remember we can still issue a letter of intent and draft guarantee during the setup of your guarantee facility. Provided sufficient documentation has been received.
With the facility in place, a guarantee is issued within 24 to 48 hours. Your facility can then be used for all your future guarantees up to a prescribed facility limit and multiple guarantees can be issued.
Remember we can still issue a letter of intent and draft guarantee during the setup of your guarantee facility. Provided sufficient documentation has been received.
Banks normally take 100% collateral and still charge fees
to have a guarantee facility in place. Our insurers offer
lower collateral requirements and you pay only for the
guarantees you require. There are no annual fees for
having a facility in place via Blenheim.
A guarantee facility separate from the bank will enable your company to grow since your financing can be handled by the bank and we do your guarantees.
A guarantee facility separate from the bank will enable your company to grow since your financing can be handled by the bank and we do your guarantees.
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