State Insurance Company (SIC) Ghana General Bonds Insurance
SIC’s bonds are sureties given to employers of contractors, financiers and other principals to guarantee the performance of specific contractual obligations of the contractors or project executors.
SIC has two main bond classification;
- Construction/Project Bond
- Customs Bond
These are bonds provided to our clients in the construction industry. Such bonds include, Bid Bond, Performance Bond, Advance Mobilisation Bond.
This is a bond given to people (Clients) who want to tender for projects. The Bond guarantees the owner of the project (Principal) that the Bidder will remain in the bidding process until the project (Contract) is awarded.
When the contract is awarded and the guaranteed person does not win the contract, the bid bond becomes void. In the event where the bidder wins the contract, the guarantor ensures that the bidder signs the contract to perform.
Failure by the bidder to sign the contract, the guarantor is called upon to pay the bond value guaranteed.
This guarantee is given out to contractors only when the principal wishes to advance an amount of money to the contractor to mobilize resources to work on the project.
The bond is an undertaking to the owner of the project to refund monies advanced to the contractor to mobilize resources to work on the project should the contractor after collecting the mobilization fund default in the performance of the project.
If however the contractor utilizes the money in the performance of the project successfully then the bond becomes void