Advance Payment Bonds are provided in the event that the Employer advances the Contractor payment before the contract is completed. These are typical in construction contracts where the Contractor may need assistance with start up costs for the contract. An example of this is where a Contractor needs to purchase plant, equipment and materials to get the contract started. The Bond guarantees the Employer for the advance payment in circumstances where Contractor does not fulfil their contractual obligations.
An advance payment bond will normally be an on-demand bond, which means that the Surety will pay the amount set out in the bond immediately on demand by the Employer. These type of bonds provide comfort to an employer that they can reclaim their advance payment if the contractor fail to deliver on the contract.
If you’re a Contractor and your Employer has agreed to provide you an Advance payment in return for a Bond then Thomond Bonds are here to help you through the process.
If you have any specific wording you require for the Contract can you include this
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