🔶 Coverage Overview

Ta'awuniya Insurance Company provides bank guarantee insurance services to contracting companies, covering the following types of guarantees:

🔸 1. Bid Bond

A guarantee submitted by a contractor along with a tender or bid. It represents a specified percentage of the total bid value and demonstrates the bidder’s commitment to the tender requirements.

🔸 2. Performance Bond

This guarantee is submitted by the successful bidder to ensure the proper execution of the contract entered into with the beneficiary, in accordance with the terms and conditions of the construction contract.

🔸 3. Advance Payment Guarantee

In large-scale projects, a contractor whose bid has been accepted may require an advance payment from the contracting authority to finance the project and meet the costs of implementation. Such an arrangement is stipulated in the contract to cover the contractor’s financial requirements.

🔶 Required Documents and Guarantees

Applicants are required to complete the insurance application form and submit the following documents:

• Copy of the Certificate of Incorporation.

• Copy of the Certificate of Deposit.

• Copy of the membership certificate issued by the Contractors’ Union.

• Company Profile.

• Copies of the company’s balance sheets for the last three years, duly certified by an external legal auditor.

• The company’s organizational structure, along with the General Manager’s CV.

• A copy of the statement of assets owned by the company, based on the latest valuation, indicating the name of the valuation entity and the valuation date, together with a copy of the property search certificate for the real estate assets.

• Copies of completion certificates for projects executed by the company. Major projects should be selected, with at least five completion certificates submitted.

• A cheque for the guarantee amount drawn on the company’s bank account.

• A cheque for the guarantee amount drawn on the personal account of the owner or the company’s largest shareholder. The cheque must be signed, without specifying a date or amount.

• A recommendation letter from the Contractors’ Union.

• A professional registration certificate for engineering professions.

• A copy of the tender announcement (for bid bonds), the letter of award (for performance bonds), or the signed contract (for advance payment guarantees).

🔸 Additional Security Requirements

• For guarantee amounts of SDG 500,000 or less: A cheque is required.

• For amounts exceeding SDG 500,000 and up to SDG 1,000,000: A cheque, supported by an additional cheque issued by the owner or a board member, is required, in addition to the company’s cheque.

• For amounts exceeding SDG 1,000,000: First-class collateral is required, such as a mortgage over real estate, securities, heavy machinery, or other movable assets, with a collateral value covering 150% of the guarantee amount, in addition to the above-mentioned guarantees.