BONDS, GUARANTEES & SURETIES
Performance Bond
Performance Bond Insurance in Singapore is a type of surety bond that protects the project owner if the contractor fails to complete a job as promised. It acts as a financial guarantee that the work will be done according to the contract terms.
APPLICATION
01
Additional Information
This bond involves three parties:
The project owner (also called the obligee) who requires the bond
The contractor (the principal) who is performing the work
The insurance company (the surety) that provides the bond and promises to pay if the contractor defaults
If the contractor fails to meet their obligations (for instance, if they abandon the project, miss deadlines, or deliver poor-quality work) the project owner can make a claim on this performance guarantee bond. The surety (insurance company) may then step in to compensate the project owner or arrange for the project to be completed by another contractor.
This type of performance bond insurance is commonly required in construction, civil engineering, and infrastructure projects in Singapore, especially when bidding for government or high-value contracts. It gives project owners confidence that the contractor is financially accountable and that the project won’t be left unfinished or delayed without consequences.
02
Enhanced Coverage
02
Documents Required
To apply for performance bond insurance in Singapore, you will generally need to prepare the following documents:
A copy of the Letter of Award, contract agreement, purchase order, or project documentation
Your company’s latest ACRA Bizfile (issued within the last three months)
The most recent set of audited financial statements
The required bond format or wording, if specified by the principal or project owner
If you're uncertain about any of these documents or the process, AWG Insurance Brokers is here to assist and guide you through every step.
03
Applicable To
A performance bond insurance is typically required for businesses or individuals entering into large or high-risk contractual agreements. In Singapore, this includes:
Construction and engineering contractors bidding on government or private infrastructure projects
Subcontractors engaged in tiered developments who are obligated to provide additional guarantees to main contractors
Suppliers fulfilling high-volume or high-value purchase orders, especially in public procurement
Developers and property owners engaging service providers for major renovation or construction works
Companies submitting tenders to government agencies, where a performance bond in Singapore is often part of the standard tender documentation
Having the right contract bond in Singapore not only fulfils project requirements but also helps you demonstrate financial strength, accountability, and professionalism.
04
Case Study
Case Study: How a Performance Bond Secured a Major Construction Contract ABC Construction secured a contract for a $10 million infrastructure project with a prominent developer. One of the conditions set by the developer was the provision of a performance bond insurance worth 5% of the contract value. ABC approached AWG Insurance Brokers for assistance. Our team worked closely with ABC to assess their eligibility and prepare the necessary documentation. Within a short timeframe, we helped them secure a suitable performance bond, enabling them to submit the required financial guarantee and proceed with the project. The bond provided assurance to the developer that ABC would complete the project as agreed. Upon successful completion, the bond was discharged, and ABC fulfilled its contractual obligations without any disputes, thereby strengthening its track record for future projects.
You can always Whatsapp our customer service officers to attend to your insurance needs.
Why Choose AWG Insurance?
_edited.png)
A preferred partner to your insurance needs
AWG Insurance Brokers is a trusted, MAS-licensed broker in Singapore offering tailored insurance and risk management services. With over three decades of experience, we specialise in creating customised professional indemnity insurance that professionals and businesses can count on.
We’re more than just insurance providers; we are risk advisors. From identifying potential liabilities to selecting the right coverage structure, we work hand-in-hand with you to design a solution that matches your operational risks and regulatory requirements.
Our edge:
-
In-depth understanding of multiple industries
-
Competitive pricing through access to local and international insurers
-
Dedicated claims support and advocacy
-
Personalised advice and policy structuring
When you choose AWG, you choose peace of mind.