Fixed Construction Guarantee
When a contract is awarded, a possible option is to put in place a fixed construction guarantee equalling 5% of the contract value as opposed to a variable construction guarantee equalling 10%.
The JBCC Principal Building Agreement and GCC makes provision for the Fixed Construction Guarantee option.
The fixed construction guarantee usually expires upon the Certificate of Practical Completion or the last Certificate of Practical Completion. A fixed expiry date could be negotiated with the employer, but this must appear on the original guarantee.
How we work
Blenheim has specific expertise in raising insurance-backed guarantees from leading insurers. The insurers with whom we deal are reputable and accredited with all employers in South Africa including all municipalities, ESKOM Ltd, Transnet SOC Ltd and blue-chip listed entities.
By working closely with leading specialist insurers, we provide facilities at affordable collateral levels (if your financials are strong then collateral may be waived) and our premium rates are very competitive.
A quotation usually takes 24 hours to finalise, subject to all information being received and, with all the correct documentation completed and information submitted, the facility can be put in place within four to seven working days. With the facility in place, a guarantee is issued within 24 to 48 hours. Your facility can then be used for all your future guarantees up to a prescribed facility limit and multiple guarantees can be issued.
Banks normally take 100% collateral and still charge fees to have such a facility in place. Our insurers offer lower collateral requirements and you pay only for the guarantees you require. There are no annual fees for having a facility in place via Blenheim.
A guarantee facility separate from the bank will enable your company to grow since your financing can be handled by the bank and we do your guarantees.
Three unique benefits Blenheim can offer you as a client:
- Free Letter of Intents when requesting via our website, hassle free
- Immediate Guarantee Exposure Reports generated via our tailored made software as and when required
- Dedicated account manager assigned to you once you become a client