Bond for public works
Ensure compliance with your contracts with public administrations.
At SABSEG, we offer bond insurances for public works, ensuring that your company complies with all contractual obligations during the bidding and execution process of works and services.
Public administrations award contracts for public works and services to companies through bidding. Both bidding companies and awardees must ensure compliance with their contractual obligations at any phase of the competition. To ensure this compliance, the market offers a range of insurance known as bond insurances for public works. These insurances provide execution guarantees, bidding guarantees, supply guarantees, and retention guarantees.
According to the Ley de Contratos con las Administraciones Públicas (Law of Contracts with Public Administrations), companies wishing to bid for a public contract or that result in awardees must present various bonds or guarantees. At SABSEG, we provide our clients with these guarantees, essential for bidding, execution, advances, and supplies in public works or services.
Highlights
Types of Sureties: bond insurances are divided into several categories, each designed to cover different aspects of the contractual process.
Provisional Guarantees
They ensure the maintenance of the offer presented by the company for a specific project. Generally, the amount corresponds to 3% of the base bidding budget.
Execution bonds for workforce or service provision
They guarantee the proper execution of the contract under the agreed conditions, with an amount usually of 5% of the awarded budget.
Bond insurance for the collection of materials / advances
Ensure that the collected materials will be used in the corresponding work, guaranteeing the advances on the final execution price.
Retention guarantee
They replace the usual withholdings in work certifications, ensuring the proper fulfillment of the contract and the correct execution of the project.
Coverages
- Coverage against contractual breaches.
- Protection against claims from Public Administrations.
Bond for public works
How can we help you?
Contact your specialists for Bond for public works
Frequently Asked Questions
Who takes out bond insurance and who does it insure?
Companies wishing to participate in a public contract or that have been awarded must take out a surety insurance. This insurance conforms to the terms and conditions specified in the competition's specifications. The policyholder can be any private entity that meets the necessary legal requirements.
Who does it insure?
The bond insurane protects Public Administrations, ensuring that the awarded companies comply with the stipulated contractual obligations.
Coverage and current legislation
The coverage guarantees compliance with the obligations of the awarding companies. It is governed by Law 9/2017, of November 8, on Contratos del Sector Público (Public Sector Contracts), which ensures transparency and effective competition.