What is a Bond?
A Bond is a written legal contract executed under seal whereby the person or persons entering into it bind themselves to pay to some other person or body a specified sum of money, known as a penalty if the bond if any of the conditions of the bond are not performed.- It provides a guarantee that projects will be completed as expected – even if the contractor fails
- Bonds are an inexpensive way to protect the public interest and assure contracts are completed on time, for the agreed-upon price
- Request for a quotation
- Download and fill the proposal form
- Submit identification documents (Driving license, National ID, Passport, and TIN certificate)
- Premium payment
- Sign contract
**NB: Observe Bonds minimum requirements as indicated in the FAQ section.
A performance bond is a surety bond issued by an insurance company or a bank to guarantee the satisfactory completion of a project by a principal. If the principal fails to perform according to the specifications laid out by the contract (most often due to the bankruptcy of the principal) the client (obligee) is guaranteed compensation for any monetary loss up to the amount of the performance bond.
This is a down payment given to the principal by the obligee to ensure that he will perform his obligation as mentioned in the contract. Advance Payment Bond guarantees the obligee to complete his contract as per the agreement covering loss only when the principal cannot be able to refund the amount given by the obligee.
This tender bond (or bid bond) is for use where a Procuring entity is obtaining tenders for a contract and requires a bond as security against the risk of the successful bidder failing to enter into the contract. It gives the beneficiary the right to call the bond on demand within a specified period and for a maximum specified amount.
This is a guarantee from a surety to the Government that the principal will faithfully abide by all laws and regulations governing the payment of Customs revenue together with the proper carrying on of business in dutiable articles. There are two classes of Bonds namely:
- Particular Bonds - These are executed to cover one specific transaction
- General Bonds - These are executed to cover a number of transactions over an unspecified period of time.
This is a legal authorization that allows a person to take employment in instances where a person is given permission to work in a country where one does not hold citizenship. The first surety should be the firm employing such a person and the second surety is the Insurance company. It is the responsibility of the first surety to write to immigration when such persons leave the organization for the bond to be cancelled.
- Letter from Broker requesting for bonds on behalf of the client
- Letter from the client asking for the bond facility
- The contract terms with employer
- General Counter guarantee duly completed, signed by two directors and sealed. The signatures to be witnessed by two senior employees in the organization or a lawyer
- Director’s personal counter guarantees signed and witnessed by a lawyer.
- Application form for us to consider issuing Bonds duly completed and signed
- Director’s resolution from the company secretary
- Financial Audited reports for the last three years signed and approved by the board of the particular company
- Company profile and certificate of incorporation
- Articles and Memorandum of Association
- Copies of License, Registration, TIN Certificate
- ID/Passport copies of Directors and witnesses
- Supporting Business (fire and burglary)
- Letter from TRA confirming no outstanding bonds
- Reference on previous projects undertaken and completion certificate
- Collateral for bond amount (100% collateral for Bond to be issued)
- Cash Deposit
- Motor vehicle log book
- Plant and machinery equipment
- Real estate
- Stock or shares
- Valuation report for property collateral (Use of valuer approved by UAP)
- The client will continually secure a mortgage or any other facility in favour of UAP in respect of property the nature and the value of which is satisfactory to UAP and any cist arising for facilitating this mortgage or security will be incurred by the client.