Contract Guarantee | Bond Insurance for Malaysian Businesses
Ensure your business meets all contractual and financial obligations with a legitimate contract guarantee or performance bond through insurance
The Contingent Advantage
Ease of Application
We have streamlined the process to only require a set of documents to support your application
Fast and Compliant
We offer speed without compromising on compliance to your contractual needs
20 Years Expertise in Malaysia
We understand regulatory requirements and standards and help you end-to-end
What is a performance bond?
A performance bond is a surety bond that ensures a contractor fulfills their contract. It protects clients by covering financial losses or hiring another contractor if the original one fails to complete the project. Common in construction and infrastructure projects, these bonds are often mandatory to guarantee project completion.
Exact coverage to meet your contractual needs
Performance Bond:
After being awarded a contract, this is an assurance that you will complete your project as per contract terms and protecting your client from financial losses if you fail to fulfil your obligations.
Bid/Tender Bond:
This assures that you, as a bidding contractor, is financial capable and serious about taking on the project and compensates the client if the contractor withdraws after winning the tender.
Advance payment bond
For contractors applying for advance payment from the Principal to fund the initial expenses for the contract. This provides a guarantee to the principal if the contractor absconds or fails to repay the amount advanced to them.
Commercial surety bond
Used to guarantee that businesses will comply with various legal requirements, such as licensing or contract conditions, and they protect against financial loss in case of non-compliance.
Frequently asked questions
What is a Performance Bond, and Why Do I Need It for My Business?
A performance bond is a guarantee that a contractor will complete their work as promised. It's common in construction and other big projects. If the contractor fails, the bond covers the losses. In Malaysia, it's required for many government and private projects.
How Much Does a Performance Bond Cost in Malaysia?
It usually costs 0.2% to 0.5% of the project value. For example, a RM1,000,000 project might cost RM2,000 to RM5,000 for a bond. The exact rate is determined after a thorough assessment of the contractor's credentials and the specific contract terms.
What Is the Difference Between a Bid Bond and a Performance Bond?
A bid bond shows the contractor is serious about their offer. A performance bond kicks in after the contract is signed, ensuring the contractor finishes the job.
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Malaysian Home Grown Appliances: Navigating Challenges and Competition
In this episode of Paranoid Founders, hosted by Michelle and sponsored by Contingent, Bevan Lee of Corvan delves into evolving his family's smart home appliance business into a market leader.
