Employers will advance you funds to start work — but only against a guarantee that the money will be used for the contract, or returned.
An advance payment guarantee is a written commitment to your employer that the advance they release will go into the contract — and that they can recover it if you do not deliver.
Mobilisation is where most contracts stall. You need funds for materials, plant and labour before a single certificate is raised, and the employer will not release them unsecured. The guarantee closes that gap on the day it is issued.
It is usually written for the full value of the advance, and it reduces as the advance is recovered from your interim certificates — so your exposure falls as the work progresses.
A bond is not a loan and it is not motor-style cover. Three parties are named on it, and knowing which one you are makes the rest straightforward.
The contractor or supplier. You apply for the bond and remain fully responsible for delivering the contract.
Underwrites and issues the bond. As a registered broker we place it with an insurer the employer will accept.
The procuring entity or client. They hold the bond and can call on it if the contract is not performed.
Your contract sets out the advance and the guarantee the employer requires against it.
Contract or LPO, company documents and the wording the employer expects.
We place it with an insurer and deliver the original to your employer.
You mobilise. The guarantee reduces as the advance is recovered from certificates.
These are the same papers you already assembled for the tender, so there is rarely anything new to chase.