Surety BondsStening Simpson Industry Leaders in Global Surety Solutions. For over 42 years Stening Simpson has been at the forefront of the Surety Industry setting the benchmark.
Types of Surety Bonds
Contract Bonds provide security against non-performance or default. Contract Bonds include:
- Retention Release
Provides security to the beneficiary when the contractor is advanced funds from the retention fund.
- Off Site Material
Secures the beneficiary where payment to the contractor for items to be constructed off site has occurred but delivery of the goods has not taken place.
Supports a contractor’s bid or tender to ensure that they will enter into a contract if accepted.
- Performance Bonds
Provides security to the beneficiary against the contractors non-performance or default during the contract period.
- Maintenance Bonds
Secures the contractor’s obligations during the warranty or defects period.
- Advance Payment
Secures funds advanced to the contractor for capital purchases or site preparation.
Commercial Bonds provide security for a company’s obligations under local, state and federal governments regulation or statute. Commercial Bonds include:
- Mining Rehabilitation Bonds
Legislation is changing requiring mining companies to provide a greater level of financial assurance by increasing reserves and capital, which is an onerous financial commitment and may adversely affect the economic feasibility of the project.To help mining companies comply with individual state legislation in a manner that mitigates the risk of early closure, whilst at the same time allowing the company to optimise its cash management and capital strategy, there is an innovative and flexible mining rehabilitation product that:
- Complies with current state legislation;
- Provides the mining company with financial flexibility with less onerous security requirements than those required by banks;
- Enables the mine to potentially access surplus free cash or cash, previously tied up by banks or state governments, to facilitate growth and investment.
- Decommissioning Mining Bonds
Decommission Mining Bonds are used to guarantee proper removal of the equipment and restoration of the environment to its pre-existing state. These types of Bonds are required by the property owner and/or local governmental authority and the project developer/owner is required to provide them.
- Lease Bonds
Lease Bonds are used to secure a commercial lease agreement and they are formatted and worded identically to a bank guarantee. They are also unconditional, irrevocable and payable on demand. Lease Bonds do not require tangible security such as cash or property.
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