Performance guarantee

We are firmly committed to our partners, companies that sign public procurement contracts, guaranteeing good practices and fulfilling the assumed contractual obligations.

The Obsidian team congratulates you on winning the auction! We are keen to help you setup this compulsory insurance necessary for the next stages of its development contract. We are constantly adapting our insurance solutions to the market requirements. Therefore Obsidian Broker experts are recommending personalised policies that prevent company's funds from being blocked - as it happens with the letter of bank guarantee or by setting up a money deposit. In addition to the more advantageous costs, the guarantee of the good execution policy protects the insured of any unfounded or abusive request from the beneficiary during the implementation of the contract.

The performance guarantee is required at this stage to insure the beneficiary in the event of non-compliance or improper or delayed performance of the contractual obligations assumed by the contractor. The policy usually has a validity of 3 years, both in the case of building contracts and in the case of supply contracts of products or services. The validity of the Good Performance Guarantee covers the period of execution of the work or may also cover the period of maintenance / notification of defects. The value on which the performance guarantee must be calculated is determined by the Contracting Authority and could be equal to 5% -10% of the value of the contract (2.5% -5% for SMEs).

We support professionalism and responsibility in contractual relations. Good performance guarantee is an important damage management tool, the executing company agreeing to assume full responsibility for non-compliance with contractual obligations. In the case of a proven fault, the insurer has the obligation of full compensation, according to the terms set out in the insurance contract.

Benefits

  • Reduced costs compared to bank guarantee letters
  • This avoids working capital blockage
  • The policy allow participation in multiple public procurement procedures
  • Specialised advice during the contract
  • Issuance of the guarantee quickly and efficiently
  • Issuance of the guarantee both irrevocably and unconditionally and conditionally
  • Reduces the risks for the insured, provided that the payment is conditional on proof of non-fulfilment of a contractual obligation

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