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