suretyship

Contractor’s Bond

These types of bond cover contracts for construction and engineering contracts, as well as supply, delivery, installation and service contracts.

  1. Bidders Bond
  2. Surety Bond
  3. Performance Bond
  4. Guarantee Bond

PERFORMANCE BOND

It guarantees that the Principal will perform the obligations set forth in the construction agreement, such as (1) guarantees the construction and completion of a project in accordance with the approved plans, specifications and terms and conditions of the contract, (2) guarantees the principal’s obligation under a supply and delivery and/or installation contract with respect to equipment, materials, supplies and similar terms.\

BID BOND

It guarantees if the Principal will win in the bid, the winning bidders shall enter into a contract with the Obligee and will subsequently post the necessary bonds such as a Performance bond.

SURETY / GUARANTEE BOND

Warranty – Guarantees the correction or repair of any latent defects in workmanship and materials used in the project that become evident within six months or one year from the date of final acceptance or completion of the project in certain specified cases

DOCUMENTARY REQUIREMENTS COMMON TO ALL BONDS
  1. Articles if Incorporation and By-Laws ( if the applicant or co-signer is a Corporation)
  2. Board Resolution of the corporation authorizing the names corporate officer to sign the bond and related documents, or Copy of the Secretary’s Certificate attesting to the adoption of such resolution
  3. List of Current Officers/ Directors of the Corporate applicant, certified by the Corporate Secretary (Certificate of Incumbency)
  4. Articles of Partnership
  5. Joint Venture Agreement/ Consortium Agreement
  6. Bond application duly accomplished by the Applicant
  7. Co-Signer’s information sheet duly accomplished by the co-signer
  8. The latest Audited Financial Statements of the applicant/ co-signer or his/ its latest Income Tax Returns filed with the Bureau of Internal Revenue
  9. Certificate of Registration of business name of an individual applicant/ co-signer.

ADDITIONAL DOCUMENTARY REQUIREMENTS
FOR EACH TYPE OF BOND
FOR CONTRACTOR’S BOND (Bidders, Performance, Surety Bond)
  • Prequalification Statement required by and filed with Obligee (if available)
    Note: This is a requirement in the government infrastructure contracts
  • Certificate of Accreditation with the Construction Industry of the Philippines
    (required for construction contractors)
  • Bid documents
    (Invitation to Bid, Notice to Bidders, Instructions to Bidders, General Conditions of the Bidding)
  • Contract Documents (Construction Contract, Service Contract, Purchase Order, Job/Work Order, Indent Order, Change Variation Order, Notice, Letter of Award, Supplemental Contract.)
FOR JUDICIAL BOND

(Attachment, Injunction, Replevin, Guardian’s, Administrators, Defendant’s Bond, Supersedeas Bond)

Complaint/ Petition, Answer, Court decision or Order

FOR FIDELITY BOND
  • Application for fidelity bond
  • Employer’s statement