The right guarantee,
at the right time
Every contract requires a different guarantee depending on the stage. Bid, performance, advance payment, retention and maintenance. We know each instrument inside out. We assess any of them within 48 to 72 hours, without a bank guarantee.
Contract Lifecycle
You need to demonstrate financial standing and commitment to the contracting authority.
You must guarantee compliance with all contractual obligations throughout the execution of the contract.
The payer requires a guarantee that the funds can be recovered if contractual obligations are not fulfilled.
The contractor provides a guarantee to avoid payment retentions.
The contracting party requires protection during the post-completion warranty period.
Choosing the wrong guarantee can be costly.
Requesting the wrong type of guarantee can invalidate your bid, put you in breach of contract, or worse — cost you the contract altogether.
And if you arrange it through your bank, you may face weeks of delays, reduced banking capacity and tied-up liquidity. All for a guarantee that could be assessed and issued within 48–72 hours.
Many contractors and bidders have experienced tender delays caused by the time required to obtain bank guarantees.
"I don't know what guarantee is being requested"
The tender document mentions a provisional guarantee; the bank talks about a bond. They are the same thing, but the team doesn’t know it.
Award deadline in 5 days, bank in 3 weeks
The window to submit the performance bond is narrow. The bank doesn’t make it.
The advance arrives, the guarantee ties up capital
You receive funds from the client but must pledge almost the same amount to guarantee their return.
The same process, every time
For every tender, you start from scratch. Documentation, delays, paperwork. Again and again
Which one do you need?
Five types of surety bonds, five stages of the contract. Each with its own purpose, timing and scope of coverage.
Payment
Delivery
Delivery
Bid Bond - Tender Bond
Submitted together with the offer in a public tender. It certifies that the bidder is serious and accepts the consequences if they withdraw their offer or fail to formalise the contract if awarded.
- For public and private tenders across Europe.
- A fast alternative to the provisional bank guarantee.
- Usual amount: 2–3% of the tender value.
Until award
48 - 72h
None
None
Performance Bond
Issued once the contract has been awarded. It guarantees to the contracting authority that the successful bidder will perform the contract in accordance with the agreed terms and within the specified timeframe.
- Mandatory for contracts with public authorities.
- Also required in higher-value private sector contracts.
- Usual amount: 5–10% of the contract value.
Duration of the contract
48 - 72h
None
None
Advance Payment Bond
Where the contracting party makes an advance payment before the works are executed, this bond is required to ensure that the funds can be recovered if the contractor fails to perform.
- Public and private contracts with advance payments
- Allows the contractor to receive funds without blocking the equivalent amount
- The bond amount equals the advance received
Until amortisation
48 - 72h
None
None
Garanzia di Ritenuta
Constituted after partial delivery or completion of a phase of the work or service. Covers the retention applied by the administration upon partial payment of a delivery with a works certificate.
- Construction works executed in phases
- Service contracts executed in phases
- Replaces the retention applied by the public authority
Until amortisation
48 - 72h
None
None
Maintenance Bond
Constituted after delivery of the work or service. Covers the post-delivery guarantee period during which the contracting party may claim for defects or breaches.
- Covers the guarantee period after delivery of the work.
- Protects the client against execution defects.
- Usual amount: 5% of the award value.
Until amortisation
48 - 72h
None
None
From “I need a guarantee” to having it issued.
Four steps. No surprises. No office visits. No repeating documentation every time.
Tell us
what you need.
Send us the tender specifications, award notice or document requiring the bond. If you are not sure which one applies, we will work it out together.
- Day 1
We assess your application
Our team reviews your case and requests any documentation needed to understand every detail.
- 24-48h
You receive clear conditions
No small print. Premium, duration and bond conditions. You decide with no obligation.
- 48-72h
We arrange
issuance
Your bond is issued and ready for submission. No office visits. Nothing more required from your side.
- Within hours
Want to grow by participating in European public tenders? Use our free search engine and access all calls in one place, with filters by sector, country, amount, date or contract type.
Do you tender more than once a year? Plafond is for you.
With Plafond, we assess your company once a year. We set a risk ceiling aligned with your financial standing. Once approved, you can request any of the approved guarantee types without repeating documentation — quickly and efficiently.
A pre-approved facility. Bid bonds, performance bonds, advance payment bonds, retention bonds or maintenance bonds. Whatever you need, whenever you need it.
One annual assessment
We do not repeat the analysis for each guarantee. One annual review, and that’s it.
Issued in hours, not days
With an active Plafond, a bond can be issued on the same day it is requested.
All types covered
Bid bonds, performance bonds, advance payment bonds or maintenance bonds. All issued from the same facility.
What documentation is required to apply for a surety bond?
The documentation required varies depending on the insurer and the type of operation, but generally includes information on the company’s financial, fiscal and legal situation, together with documentation related to the contract or tender (specifications, award notice, etc.).
How Much Does a Surety Bond Cost?
The cost of a surety bond depends on several factors that determine the level of risk involved:
- The company’s financial strength
- The type of bond required (bid bond, performance bond, advance payment bond, etc.)
- The amount and duration of the bond
- The company’s track record
- The country where the bond will be issued
- The company’s technical and operational capacity
- Market conditions
If you would like to learn more, read our article on the factors that influence surety bond pricing.
Can a surety bond replace a bank guarantee?
Yes. Both surety bonds and bank guarantees are valid instruments for securing a contract, and either can be used.
The key difference lies in the financial impact on your business:
- Bank guarantee: uses part of your banking capacity and ties up liquidity or assets as collateral.
- Surety bond: does not affect your banking capacity and does not tie up capital.
Discover all the advantages of surety bonds compared with traditional bank guarantees.
How long does it take to issue a surety bond?
It depends on whether you already have a Plafond (pre-approved bonding facility) in place with the insurer or not:
- With a Plafond line: issuance is same-day, as the company has already been assessed and approved.
- Without a Plafond line: the required documentation must be submitted (financial statements, legal documentation, tender documents, etc.). Once received, you will normally receive a quotation within 48 hours.
Do you also arrange guarantees between private companies?
Yes. Surety bonds can be used both in contracts required by public authorities and in agreements between private companies.
- With public authorities: they are required by law to accept a surety bond as a valid form of guarantee, unless the tender documents state otherwise.
- Between private companies: both parties must agree on the type of guarantee accepted. Both a surety bond and a bank guarantee are acceptable where there is mutual agreement.
What types of guarantees do you arrange?
We arrange all types of surety bonds. The most common are:
- Bid Bond: to participate in public tenders and procurement processes.
- Performance Bond: to guarantee performance of the contract once awarded.
- Advance Payment Bond: when a company receives an advance payment and must guarantee its repayment if contractual obligations are not met.
- Maintenance Bond: provides cover during a defined period after completion, ensuring that the works have been carried out correctly and covering potential defects in materials, workmanship or design that may arise at a later stage.
- Retention Bond: replaces amounts retained by the contracting authority until completion of the contract. It avoids the retention of funds from certified interim payments due to potential defects.
If your situation does not fit exactly into any of these categories, contact us with no obligation and we will find the most suitable solution for you.
Tell us which bond you need.
We take care of the rest.
No office visits. No tied-up liquidity. Tell us about your case and we will respond with terms within 48–72 business hours.