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Performance Bond Price Guarantee

SB&G PERFORMANCE BOND PRICE GUARANTEE

Challenge Us With Your Performance Bond Quote

Already have a Performance Bond quotation? Send it to SB&G and challenge us to beat it.

In most cases we expect to be able to improve a genuine like for like Performance Bond quote, but the important words are like for like.

Our promise is simple.
We compare the whole offer, not just the headline bond fee.
Email Us Your Existing Quote Start a New Performance Bond Application

Price Guarantee applies to current, genuine and verifiable competing quotations where the material terms are comparable, including bond value, wording, duration, security requirements and overall commercial terms.

PRICE GUARANTEES NEED CONTEXT

A Cheaper Performance Bond Is Not Always a Better Performance Bond

Some firms promote claims such as we will beat any quote, lowest price or 100% success.

These claims can sound compelling, but a Performance Bond is not a commodity where every quotation is identical apart from price.

A cheaper quote may involve a different surety, different bond wording, additional collateral, personal guarantees, additional fees or more onerous conditions.

If the material terms have changed, the cheaper quote is not truly like for like.
THE SB&G DIFFERENCE

Use Us for the Comparison. Beware of the Headline Number.

Anyone can compare two prices. A proper surety comparison looks at everything that sits behind those prices.

USE SB&G

We Compare the Whole Offer

  • Bond fee and all additional charges
  • The proposed surety
  • Bond wording
  • Cash collateral
  • Personal guarantees
  • Parent company support
  • Expiry and extension terms
  • Beneficiary acceptance
BEWARE

A Lower Fee Can Hide a Worse Deal

  • A different or less suitable surety
  • More onerous bond wording
  • Cash collateral being introduced
  • A personal guarantee being required
  • Additional administration or extension charges
  • Commercial conditions that were not obvious at the outset
  • A surety the employer ultimately refuses to accept
  • A cheaper quote that could delay a tender or contract
LIKE FOR LIKE

What Does a Genuine Like for Like Quote Mean?

Two Performance Bond quotations should only be treated as comparable where the important commercial terms are materially equivalent.

Same Bond Requirement

The same bond value, beneficiary and underlying contractual obligation.

Comparable Wording

A lower fee achieved by materially changing the wording is not necessarily a comparable offer.

Comparable Security

Corporate indemnity only is very different from substantial cash collateral or a personal guarantee.

Comparable Surety

The proposed surety must be suitable for the requirement and acceptable to the beneficiary.

Comparable Duration

Expiry, Practical Completion, Making Good Defects and extension provisions should all be understood.

Comparable Total Cost

Compare the full commercial cost, including broker fees, amendments, extensions and any additional charges.

A SIMPLE EXAMPLE

Would You Save £1,000 to Tie Up £500,000?

Consider two quotations for exactly the same £500,000 Performance Bond.

QUOTE A
£5,000 Bond Fee
  • £500,000 Performance Bond
  • Corporate indemnity only
  • No cash collateral
  • No personal guarantee
  • Acceptable wording
QUOTE B
£4,000 Bond Fee
  • £500,000 Performance Bond
  • £500,000 cash collateral
  • Working capital tied up
  • Different commercial terms
  • £1,000 cheaper headline fee
Quote B is cheaper. It is not the same deal.

Saving £1,000 on the bond fee would be meaningless if the contractor had to tie up £500,000 of working capital to obtain it.

THE SURETY MATTERS

Know Who Is Actually Issuing Your Performance Bond

Different brokers do not necessarily have access to exactly the same surety markets.

Another broker may therefore offer a cheaper quotation using a different surety. That can still be an excellent solution, but it is not automatically the same offer.

The proposed surety can affect employer acceptance, wording, security requirements, future capacity and the overall commercial relationship.

A cheaper bond has little value if the beneficiary refuses to accept the surety or the wording.
BEFORE YOU PAY

Know What You Are Buying Before You Commit

Before paying any non refundable fee, make sure the important parts of the Performance Bond arrangement are clear.

01

Who is the surety?

Know which company will actually issue the bond and whether the beneficiary is likely to accept them.

02

Has the wording been agreed?

Make sure the proposed surety can issue wording that is acceptable under the contract.

03

Is collateral required?

Check whether the quote assumes cash collateral, a personal guarantee or additional company support.

04

Are there additional fees?

Ask about administration, amendments, extensions, project overruns, cancellation and reissue charges.

05

What happens if the project overruns?

Understand whether moving beyond an estimated completion date creates additional commercial charges.

06

When does the bond actually expire?

Understand the legal expiry mechanism within the bond itself and any separate commercial conditions attached to the quotation.

One simple rule

If you are being asked to pay before you know the surety, before the wording is agreed or before material security requirements are clear, ask for that information first.

100% SUCCESS CLAIMS

Placement Success Does Not Tell You Whether the Terms Were Good

It may be possible to obtain a Performance Bond for a financially weak applicant if enough security is available.

At the extreme, substantial or even full cash collateral could make a bond placement possible.

That might technically count as a successful placement, but it tells you very little about whether the resulting terms were attractive to the contractor.

The quality of the placement matters just as much as whether the bond was issued.
THE SB&G PRICE CHALLENGE

Send Us the Quote. We Will Do the Comparison.

1

Send Your Existing Quote

Email the competing quotation and proposed bond wording if available.

2

We Check the Terms

We compare the surety, wording, collateral, guarantees, expiry and fees.

3

We Challenge the Price

Using access to 20+ surety markets, we seek a genuinely comparable or better commercial outcome.

Email Your Quote to SB&G
RELATED SB&G GUIDANCE

Understand the Terms Behind Your Performance Bond

Performance Bonds Our main Performance Bond service, underwriting and application page. Bond Security & Collateral Understand cash collateral, indemnities and other forms of security. Conditional and On Demand Bonds Why wording can materially change the surety exposure. Personal Guarantees When directors or shareholders may be asked to provide additional support. Declined Surety Bonds Why another surety market may take a different view of a requirement. Surety Underwriting How the surety assesses the applicant, contract and underlying risk.
WHAT DO YOU NEED?

Already Have Terms or Starting a New Application?

If you already have a Performance Bond quotation, send it to us and challenge SB&G to improve it.

If you have not yet received terms, start a new Performance Bond application and we can approach the appropriate surety markets for you.

I Already Have a Quote

Email the quotation and bond wording to SB&G for a like for like review.

Email My Existing Quote
I Need a New Performance Bond

Start a new enquiry through our main Performance Bond application page.

Start a New Application

Price Guarantee: applies to current, genuine written competing quotations capable of verification and subject to materially comparable bond value, beneficiary, wording, duration, indemnity, collateral, guarantees, proposed surety and other material conditions. Performance Bond terms remain subject to underwriting and surety acceptance.

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