At Access Bank we provide our customers with bonds and guarantees to facilitate their local and international trade transactions.
- Advance Payment Guarantees
On large contracts, significant advance payments are often made on the contract becoming effective. These payments, which can be for as much as 15% of the contract value, may be intended to help with the contractor';s mobilisation costs. In exchange, the contractor provides an Advance Payment Guarantee under which the advance payments can be reclaimed if the contractor fails to proceed with the contracts.
Access Bank issues Advance Payment Guarantees to support the execution of contracts awarded to its customers.
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Bid Bonds
Bid Bonds (or 'Tender Bonds') are intended to ensure that during a tender process, frivolously bids are not submitted by bidders who have no intention or capability of carrying out the work.
Access Bank issues Bid Bonds to support the bidding of projects/ contracts by its customers.
Performance Bonds
Performance Bonds are issued at the start of contracts, normally for a percentage of the contract value, the purpose of which is to give the beneficiary an instrument for obtaining quick and clear redress for damage suffered if the contractor's performance has been poor.
- Retention Bonds
As an additional protection, contract terms normally allow for retentions whereby a percentage of all contract payments are held back and are paid to the contractor only at the end of a maintenance or pre-agreed period, when any defects have been identified and corrected. The contractor will normally prefer a situation where contracts allow for retention bonds to be provided.
Access Bank issues Retention Bonds to support the execution of contracts by its customers and such bonds will be issued at the time the first retention will have been made and increase in value at as subsequent payments are received.