Construction Performance Bonds
As specialist insurance brokers in Ireland, BBi Ireland can arrange independent or Construction Performance Bonds to protect your business, vehicles, people and more. Get in touch to discuss your requirements today.
Construction Performance Bonds
If you have secured a contract and it requires a Construction performance bond guarantee, BBi Ireland can help.
Applying for a bond can be a difficult exercise and not having the appropriate bond from a regulated entity could result in losing out on a well earned contract. BBi Ireland pride ourselves on our specialised experience and do all we can to make the Performance Bond application seamless and simple for you.
We help you understand what is required and support you through the documentation provision process. We use an extensive range of regulated insurers and give you options and choices.
Why Choose BBi as a Broker Partner
Our Heritage
Dedicated Account Manager
We have specific service level agreements with insurer partners, ensuring our clients get a great service.
In-house Claims Team
BBi Ireland has an experienced team of professionals looking after your needs when you need us the most.
35+ years’ experience
With up-to-date knowledge of the latest legislation and health and safety issues faced by companies across Ireland.
Flexible Cover
Our cover and payment methods are flexible so you can choose the option that suits your business needs.
One Stop Shop
We can arrange cover for a wide range of business and personal insurance requirements.
What Can Construction Performance Bonds Cover?
We understand businesses can be complex as they face a number of risks and exposures, which can make insurance feel complicated. That’s where we can help. Choose the right Performance Bond for you:
Why Choose BBi for Construction Performance Bonds?
High Quality Options
BBi Ireland use a variety of experienced insurers specialising in surety who are approved by the Central Bank of Ireland giving you confidence in your cover.
Quick & Efficient
Once BBi Ireland is in receipt of all the relevant information to allow insurers to underwrite the risk, a quick turnaround is guaranteed on all enquiries, no matter the size or complexity of the project.
Our Experience
BBi Ireland have extensive knowledge of contract types and requirements, from local government contracts to standard building contracts.
Performance Bonds Resources
Application Form
Our Performance Bond Application Form
Guide to Performance Bonds
A Support Guide to Performance Bonds
Step-By-Step Guide
A Simple 3 Step Buide to Performance Bonds
Frequently Asked Questions
It’s important to get the right Construction Performance Bonds for your business. To help you do that, here are our frequently asked questions about Construction Performance Bonds. If you’d like some independent advice, please call us on +353 49 433 1038, and the team will be happy to help.
We’re answering some of the most important Performance Bond questions below
A performance bond is a financial guarantee that protects a project owner (the beneficiary) if a contractor fails to complete a contract or does not meet the agreed contractual obligations. If the contractor defaults, the bond provider may compensate the beneficiary up to the bond amount, subject to the bond’s terms and conditions.
In the UK, a performance bond is commonly used in construction, engineering, and infrastructure projects to provide financial security to employers and project owners. The bond is typically issued by a bank, insurer, or surety provider and guarantees that the contractor will fulfil its contractual obligations. If the contractor defaults, the employer may be able to make a claim against the bond.
A 10% performance bond is a bond with a value equal to 10% of the contract price. For example, if a construction contract is worth £1 million, a 10% performance bond would provide £100,000 of security. This percentage is commonly requested by employers as a balance between meaningful protection and affordability for contractors.
The contractor or supplier that is required to provide the bond typically pays the cost of arranging it. While the project owner benefits from the protection, the bond premium or fee is generally treated as part of the contractor’s project costs and may be reflected in their overall contract pricing.
For project owners, performance bonds can provide valuable financial protection against contractor default and may reduce the risks associated with major projects. For contractors, providing a performance bond can improve credibility, help meet tender requirements, and increase access to larger contracts. Whether a bond is worthwhile depends on the size, complexity, and risk profile of the project.
The cost of a performance bond varies depending on factors such as the contract value, bond amount, project risk, financial strength of the contractor, and the duration of the contract. Premiums are often calculated as a percentage of the bond value, although exact rates vary between providers and individual circumstances
There is no fixed UK-wide cost for a performance bond. Pricing depends on the contractor’s financial standing, the type and value of the project, the bond amount required, and the level of risk involved. Stronger businesses with established financial records typically benefit from more competitive rates. A specialist provider such as BBi Ireland can provide a tailored quotation based on the specific project requirements.
In most cases, the fee paid for a performance bond is a premium for the guarantee and is not refundable once the bond has been issued. Unlike a deposit, a performance bond is a financial instrument that provides protection for the beneficiary throughout the contract period.
The primary beneficiary is the project owner, employer, or client that requires the bond, as it provides protection against contractor non-performance or default. However, contractors can also benefit because performance bonds can help them satisfy contract requirements, strengthen client confidence, and secure new business opportunities.
