Need a bond to secure your next contract?
Operating in the mining and construction services sector, securing a bond or guarantee is often crucial to enable businesses to win projects.
Big banks in Australia can provide the security your clients need through a bond for your performance or the warranty period stipulated in your contract.
This is a go-to option for many businesses in this sector, with up to 100% cash cover requirements ensuring that these bonds are available.
For large, high-value projects particularly, most contracts will outline bond requirements that contractors will need to meet in order to enter into an agreement.
Export Finance Australia was a significant part of our success in winning the project.
Once we demonstrated that we had the capability to deliver a contract of that size and technical complexity – and deliver it well – we were able to solicit more work in that space.
Group CEO of WestStar Industrial (Alltype Engineering is a subsidiary of WestStar Industrial Ltd)
How can a bond support your business growth?
As the Australian Government’s export credit agency, we are able to provide a range of bonds to support businesses to secure Australian-based, export-related contracts or fulfil contracts with international clients. We require minimum security cover for bonds, which means your working capital isn’t tied up to meet your contract requirements.
Businesses across Australia have worked with our team to get the security they need to take on more contracts and larger projects, including:
- Alltype Engineering
Utilising both performance and warranty bonds, Alltype Engineering secured contracts with APA group and Lynas Rare Earths. Prior to this, Alltype Engineering’s largest contract was circa $40 million, but this jumped to $145 million with bonding support.
- Furnace Solutions
Another example of an Australian business that has utilised a bond to grow in the sector is Furnace Solutions. The business required three bonds for the initial delivery, practical completion and the 24-month defect liability period for the BHP Olympic Dam Facility – a major contract in the export-supply chain.
Securing the support you need for your next contract
At Export Finance Australia, we can provide bonds directly to your buyer or a guarantee to your bank to support a bank-issued bond.
We have different types of bonds to support your business with various contract requirements, including:
- Advance payment bonds: while down payments or upfront deposits are increasingly uncommon, some contractors or suppliers do request them. When a payment is made in advance, before materials or work are provided, the buyer/project owner may request a guarantee in the form of an advance payment bond.
- Performance bonds: assurance that if you don’t meet your obligations under a contract, your buyer can call on the bond to reduce losses.
- Warranty bonds: for obligations following the delivery of goods or services, a warranty bond protects your buyer for the length of the warranty period specified in the contract.
- US surety bonds: surety bonds assure the buyer/project owner that the exporter/contractor is qualified and capable of performing the contract in the US.
If you would like to learn more about the options for your business or how we can support your next contract, call us on 1800 093 724.
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