Performance Guarantees for South African Contractors
Protect your projects and build trust with Employers through insurance-backed Performance Guarantees—issued with a clear, professional process tailored to contractual compliance.
- Typically 10% of contract value (as required by Employer)
- Structured to align with GCC, JBCC, NEC, FIDIC, and other recognized contract formats
- Insurance-backed option to preserve banking facilities and credit lines
- Clear guidance on premium and collateral obligations
- Set up a guarantee facility for expedited future issuance
Why Secure a Performance Guarantee?
Performance Guarantees are essential tools in construction contracts, offering protection to Employers and credibility to contractors. They ensure that the project will be completed according to agreed terms, or the Employer is compensated up to the guarantee value.
A Streamlined Process for Issuing Performance Guarantees
We've refined our process to ensure quick, compliant, and professional delivery of Performance Guarantees.
Everything You Need to Know About Performance Guarantees
What is a Performance Guarantee?
A Performance Guarantee is a financial assurance that a contractor will complete a project in accordance with the terms of the contract. If the contractor defaults, the Employer can claim compensation up to the guaranteed amount.
When is a Performance Guarantee Required?
Most construction contracts—especially government and large infrastructure projects—require a Performance Guarantee before work begins.
How Much Does It Cost?
Costs depend on the contract value, project duration, and the contractor's financial standing. We offer competitive, transparent pricing.
Is the Guarantee Valid for the Entire Project?
Yes, it typically remains active until practical completion and sometimes extends through the defects liability period.
Can I Use an Insurance-Backed Guarantee Instead of a Bank Guarantee?
Absolutely. Insurance-backed guarantees are widely accepted and offer the added benefit of preserving your banking facilities.
What Documents Are Needed to Apply?
Required documents include the Letter of Award, contract terms, and the contractor's latest financial statements and management accounts.
How Long Does It Take to Issue a Guarantee?
With a pre-approved facility, issuance can be completed within 24–48 hours.
What Happens If I Default on the Contract?
If you fail to meet your obligations, the Employer may make a claim on the guarantee to recover losses, up to the guaranteed amount.
Specialists in Performance Guarantee Solutions
At GMFS, we bring over two decades of experience in construction finance to every guarantee we issue. Our approach combines deep industry knowledge with a commitment to fast, reliable service.
Ready to start your Performance Guarantee?
Call, email, request a quote, or download the Performance Guarantee Application.