Fulfill your contractual commitments with solid backing.
Request a quote for your performance bond and build trust with your clients and authorities.
Bonds
Performance Bond
A Performance Bond is a financial guarantee that ensures a contractor, supplier, or service provider will meet the obligations established in a contract. If the principal (the bonded party) fails to comply with the agreed terms—whether in timing, form, or quality—the surety company will compensate the beneficiary for damages or cover the costs to complete the work.
It is a key risk mitigation tool for both public and private contracts related to construction, supply, or services.
When is a Performance Bond Required?
Performance bonds are commonly mandatory in:
- Public or Private Works Contracts: To ensure proper execution of construction, remodeling, or infrastructure projects.
- Supply Contracts: When acquiring goods, technology, or materials that must be delivered according to specific deadlines and specifications.
- Service Level Agreements (SLAs): For cleaning, security, maintenance, or consulting services, where continuity and quality are essential.
Issuance Requirements
To issue a performance bond, the surety company will evaluate the applicant’s ethical, technical, and financial standing. Generally, the following is required:
- Technical and Financial Solvency: Tax returns and audited or internal financial statements (for the last two fiscal years and current ones not older than three months), credit history, and company profile/CV. For goods supply, a manufacturer’s support letter may be requested.
- Legal Documentation: Legal Entities (Companies): Articles of incorporation, powers of attorney, tax ID (RFC/Tax Certificate), proof of address, and corporate CV. Individuals: Official ID, CURP (if applicable), tax certificate, and proof of address.
- Base Contract: The construction or service contract including all technical annexes.
- Additional Collateral (if applicable): Endorsements from partners or shareholders. Real estate, movable assets, or financial instruments as collateral. Fund provisioning commitments.
Frequently Asked Questions
What happens if the principal defaults on the contract?
The beneficiary can file a claim with the surety company. The surety will cover damages or complete the project and subsequently seek recovery from the principal.
What happens if there is a delay?
A delay may be considered a breach of contract if it affects the contract’s purpose. The beneficiary can file a claim if they prove the impact and the contract stipulates such penalties.
Is the premium refundable?
No. The premium is the total cost of the bond for the contracted period and is nonrefundable.
How long does issuance take?
Between 24 and 72 hours after all documentation is received and the bonding line is approved by the surety company.
Why Choose NRGI Broker for Your Performance Bond?
At NRGI Broker, we understand the importance of guaranteeing contractual compliance at every stage of your project. We offer efficient solutions tailored to your industry and contract type.
Exclusive Benefits with NRGI Broker
- Direct access to toptier management in the country’s leading surety companies.
- Streamlined, digital process accompanied by experts.
- Technical and legal advisory from quoting to claims.
- Competitive rates and preferential conditions.
- Experience in public, private, national, and international contracts.
- Direct line to the legal and risk departments of surety providers.
- Support in obtaining expedited bonding lines.
