The construction guarantee division offers the following guarantees:

• Bid / tender bonds
• Advance payment guarantees
• Performance guarantees
• Retention guarantees
• Materials on-/ off site guarantees

We believe that the provision of a construction guarantee from Lombard carries with it a lot more than its financial value. It is, in the first instance, a professional third party opinion of the contractor overall and in particular, of the contractor’s ability to perform successfully in terms of the contract. In legal terms, our guarantee puts us in the position of co-principal debtor with the contractor, adding to the peace-of-mind of the beneficiary of the guarantee. Lombard has the technical, financial and legal expertise to assess the risks associated with such liabilities.

The company’s assessment is based on the following criteria and steps:

• establishing the adequacy of the applicant's financial, managerial and physical resources
• determining the exact nature and extent of any obligations and the underlying terms and conditions of such obligation
• ascertaining the effect these obligations will have on the applicant's performance and as a consequence, on a guarantor's responsibilities
• assessing and evaluating the applicant's ability to fulfil the required obligation.

Whilst there are many types of guarantees, there are an even greater number of formats. Almost each and every principal/employer has its own specific requirements and Lombard Insurance has a reliable library of wordings at its clients’ disposal.

Lombard serves the entire spectrum of the construction industry - from the very large to the emerging. We are particularly proud of our offering to emerging contractors which has seen us become a significant capacity provider to the giants of tomorrow. Our product is affordable, does not have onerous collateral requirements and is underwritten by people who understand that glossy financial statements are not the defining issue. Not only do we provide guarantees, but we extend our services into monitoring, legal and technical support, particularly regarding assessing the profitability and viability of contracts.

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