Home  »   Product  »  Bonds and Guarantee


A performance guarantee assures payment to the employer in the event that the contractor does not fulfil his obligations in terms of the underlying contract.


The Contractors All Risks Policy is designed to provide protection for building and civil works during the Contract Period. The policy is written to enable the Contractor or Employer to comply with the insurance requirements of the Contract and to cover the liability of the contractor for loss or damage during the maintenance period. Cover is available to protect against the cost of unforeseen loss or damage to building works, machinery movement, advanced business interruption and public liability, installation and construction plant. Cover could also be extended to cover surrounding property, removal of debris, offsite storage, escalation and theft on site.


Most contractors require an advance payment from the employer to finance the initial stages of the project. Such advance payments usually range from 5 to 15 percent of the contract value. In turn, the employer will require an advance payment guarantee assuring repayment of the money paid in advance. The issue of an advance payment guarantee enables the employer to call the guarantee to get a refund of advance payments made in the event of default by the contractor. An advance payment guarantee is issued for the full amount of the advance payment.


Most of contracts for construction are awarded through tender procedures. Tender bonds are designed to ensure that the tenderer does not:

  • withdraw his tender before adjudication
  • fail or refuse to accept the award of a contract in its favour
  • fail or refuse to furnish the performance security, in accordance with the instructions to tenderers.


Most project agreements call for stage payments to be made as the work progresses. Stage payments are triggered by presentation of progress certificates certified by the project engineer or consultant. These stage payment clauses frequently provide for the employer to retain a certain percentage of each stage payment as cover for any hidden defects in the completed works which may arise at a later date. Typically the percentage retained by the employer ranges between 5 and 10 percent of the stage payment.


We offer Value Added Tax Bonds/Warehousing bonds, as per the requirements from the Customs department.


We offer courts bonds, in the form of Deputy Sheriff Bonds and are currently exploring the option of increasing our range in this line of business.



Banks in Botswana are willing


Trade credit insurance is an


Yes, You Can Grow Your

To get a policy should read as contact us at +267 3188015