Bonds & Guarantees | First City Monument Bank

As an FCMB or a prospective FCMB customer in contracting business line, in the course of running your business, the need may arise to provide guarantee/assurances or demonstrate your credibility and ability to meet contractual obligations. Our bonds and guarantees will support your business in this regard.
The various options are listed below.

OPTION	DESCRIPTION	BENEFIT
Advance Payment Guarantee (APG)	FCMB guarantees the payment of any advance funds which your contract employer has advanced to your business in the event of default under the contract terms.	• Improved profitability from the award of more contracts. • Helps you provide assurance on work completion milestone as agreed will be attained. • No collateral is required for the APG
Performance Guarantee	FCMB acts as a surety that the contractor would oblige. It protects against a contractor failing to deliver the work at specified results expected and specified timing.	• Gives your project owner the comfort/assurance that the contractor will complete the project in set time. • Banks guarantees are most credible.
Bid/Tender Bond	FCMB serves as bidders’ assurance to the bond owner that projects will be commenced and completed by the bidder at agreed price.	• Ensures that project expectation gap is bridged. • Gives bidder an edge over others in the bidding process. • Helps to prevent contractors from submitting inappropriately low bids

Terms and Conditions
• Only legitimate contracts are guaranteed
• Lien if placed on Advance Payment Sum.
• Tenor of Guarantee does not exceed one year.
• For performance guarantee, contractor must be specific about the work to be performed

Documentation
• Contract / Term sheet.
• Draft Guarantee document.
• KYC documentation on Account openings.

How to apply
Formal request letter is to be submitted to the Relationship Manager at the nearest FCMB Branch

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Bonds and Guarantees

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