Letters of Guarantee

Concept of Coverage

Ta’awuniya Insurance Company provides guarantee letters services for contracting companies, covering the following types:

1. Bid Bond (Initial Guarantee):

   A guarantee submitted by the contractor with the bid in a tender/auction, representing a specified percentage of the bid value.

2. Performance Bond:

   A guarantee required from the winning bidder to ensure proper performance of the contract with the beneficiary entity according to the contract terms.

3. Advance Payment Guarantee:

   The accepted bidder may rely on the tendering entity’s resources—especially in large projects—to finance the required work, as stated in the contract to meet the contractor’s needs.

Required Documents & Guarantees (Insurance Application)

1. Copy of the certificate of incorporation.
2. Copy of the deposit certificate.
3. Copy of the Contractors Union membership certificate.
4. Company Profile.
5. Copies of the balance sheet for three years, certified by an external legal auditor.
6. Company organizational structure + the General Manager’s CV.
7. Copy of the company’s asset schedule based on the latest valuation (valuator name and valuation date) + a copy of the assets’ search certificate.
8. Copies of completion certificates for projects executed by the company (major projects; at least five certificates).
9. A cheque for the guarantee amount from the company’s account.
10. A cheque for the guarantee amount from the personal account of the owner or the largest shareholder; signed and left undated and without specifying an amount.
11. Please read the declaration carefully and answer questions accurately (especially if filled by another person), while attaching:
    • Recommendation letter from the Contractors Union.
    • Engineering Profession Regulation certificate.
12. Copy of the tender announcement (bid bond) or award letter (performance bond) and a copy of the contract (advance payment guarantee).
13. Cheque if the required guarantee is up to 500,000 SDG or less.
14. A certified cheque in the name of the owner or a board member, in addition to the institution’s cheque, for amounts exceeding 500,000 SDG up to 1,000,000 SDG.
15. For amounts exceeding 1,000,000 SDG: first-class collateral is required (property mortgage, securities, heavy machinery, or movable assets covering 150% of the guarantee value), in addition to the guarantees above.