Contract performance
Performance bonds
Support for contractual performance obligations on construction, engineering, infrastructure and other project-led contracts.
Submit this type of riskA performance bond supports the contractor's obligation to complete an agreed scope of work in accordance with the underlying contract. It is commonly required by employers, public authorities, lenders and main contractors where non-performance could create material replacement cost, delay or disruption.
Titanium considers each risk in the context of the full contractual chain: the applicant's financial and technical capacity, the project economics, the beneficiary's rights, the bond wording, the proposed security and the legal environment in which a demand could be made.
Typical uses
Where it can apply.
- Public and private construction contracts
- Civil engineering and infrastructure projects
- Energy, utilities and industrial works
- Subcontractor and supply-chain performance
Underwriting focus
What drives the decision.
- Audited financial strength, liquidity, gearing and available facilities
- Relevant delivery record, management capability and current workload
- Contract risk, margin, programme, liquidated damages and termination rights
- Bond form, demand standard, expiry mechanics and counter-indemnity
Initial submission
Information that moves the review forward.
A complete pack reduces assumptions and allows legal structure, wording and credit to be considered together.
- 01
Executed or near-final contract and proposed bond wording
- 02
Latest audited accounts and current management information
- 03
Work-in-progress schedule and details of other bonded obligations
- 04
Project programme, budget, margin and funding evidence
- 05
Applicant, group and ownership structure
- 06
Requested amount, currency, effective date and expiry mechanism
Important considerations
Structure remains case specific.
- Conditional and on-demand forms are assessed differently.
- Aggregate exposure across the contractor's full order book is relevant.
- Local issuance may require an authorised insurer or approved fronting structure.
Common questions
Clear answers before submission.
Is a performance bond the same as project insurance?
No. A performance bond supports a defined contractual obligation. It does not replace construction all risks, liability or other project insurance, and it does not guarantee every loss connected with a project.
Can bespoke bond wording be considered?
Yes, case by case. Wording is a core part of the risk because demand triggers, defences, expiry and governing law can materially change the exposure.
Discuss an opportunity
Discuss a performance bonds opportunity.
Our review starts with the underlying obligation, the applicant and the legally compliant route to issuance.
Submit a risk