Trusted Bond Insurance Partner for Government & Commercial Projects in Malaysia
Backed by leading insurers, our bonds offer the protection your contracts require, a faster, more flexible alternative to bank guarantees
The Contingent Advantage
Ease of Application
We have streamlined the process to only require a set of documents to support your application
Fast and Compliant
We offer speed without compromising on compliance to your contractual needs
>20 Years Expertise in Malaysia
We understand regulatory requirements and standards and will help you end-to-end
What is a performance bond?
A performance bond ensures a contractor fulfils their contract, protecting the client if obligations aren’t met. Similar to a bank guarantee, it secures project completion. But with insurance, contractors often enjoy faster approval and less strain on banking lines.
Coverage to meet your Contract Requirements
Performance Bond:
After being awarded a contract, this is an assurance that you will complete your project as per contract terms and protecting your client from financial losses if you fail to fulfil your obligations.
Bid/Tender Bond:
This assures that you, as a bidding contractor, is financial capable and serious about taking on the project and compensates the client if the contractor withdraws after winning the tender.
Advance Payment bond
For contractors applying for advance payment from the Principal to fund the initial expenses for the contract. This provides a guarantee to the principal if the contractor absconds or fails to repay the amount advanced to them.
Commercial Surety bond
Used to guarantee that businesses will comply with various legal requirements, such as licensing or contract conditions, and they protect against financial loss in case of non-compliance.
Warranty Bond (Defects Liability)
Provides assurance to the project owner that any defects found during the warranty or defects liability period will be rectified by the contractor. If the contractor fails to carry out repairs or corrections, the bond covers the costs to ensure compliance with the contract terms.
Security Bond
A guarantee often required by government authorities or private principals to ensure that the contractor complies with statutory, immigration, or contract-related obligations. If the contractor breaches these obligations, the bond provides financial protection to the beneficiary.
Frequently asked questions (FAQs)
What is a Performance Bond, and Why Do I Need It for My Business?
A performance bond is a guarantee that a contractor will complete their work as promised. It's common in construction and other big projects. If the contractor fails, the bond covers the losses. In Malaysia, it's required for many government and private projects.
How Much Does a Performance Bond Cost in Malaysia?
It usually costs 0.3% to 0.7% of the project value. For example, an insurance bond/guarantee for a RM5,000,000 project may be around RM15,000 to RM35,000. The exact rate is determined after a thorough assessment of the contractor's credentials and the specific contract terms (such as contract value, length and service provided).
What Is the Difference Between a Bid Bond and a Performance Bond?
A bid bond shows the contractor is serious about their offer/bid for the contract. A performance bond kicks in after the contract is signed, ensuring the contractor finishes the job.
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Malaysian Home Grown Appliances: Navigating Challenges and Competition
In this episode of Paranoid Founders, hosted by Michelle and sponsored by Contingent, Bevan Lee of Corvan delves into evolving his family's smart home appliance business into a market leader.
