The main objective of the Bonds , is to ensure compliance with different types of contracts , which include economic and legal obligations, derived from purchase orders or work contracts and orders. These contracts are concluded between two or more persons, which may be of a Moral or Physical nature.
Through this type of bond , the people involved in the signing of a contract, can be assured that the obligations embodied in it will be carried out as they were established, guaranteeing that if it were to incur in a breach, the Surety company will answer and cover the damages that are caused.
What type of Bonds are there?
- Compliance : Ensures total or partial compliance (as the case may be) of the obligations set forth in a work contract , guaranteeing the beneficiary that the company providing the service will carry out the work as agreed. The Compliance Bond may be claimed in case the contract is not fulfilled.
- Advance payment: Its objective is to guarantee the proper use and correct application of the money delivered to the guarantor as an advance payment for the execution of the works established in a work contract. This type of deposit guarantees the total or partial refund of the money in case its use is not correct and established in the contract.
- Good Quality and / or Hidden Vices: They ensure the good quality of the built work and the material and equipment installed in it . By means of this type of guarantee the repair of the damage is guaranteed if, after the work has been delivered (and within the time indicated in the contract), hidden defects or defects appear.
- Competitions and / or Bidding: They guarantee the support of the bids made by those involved in bids or contests , carried out with the purpose of determining the contractor who will be responsible for carrying out any work.
- Credit : This type of bond is valid only with PEMEX, CFE and CAPUFE . Its function is to ensure that the obligations consisting of the payment of money are carried out as agreed in the contract that is involved.