Surety

Insurance contract by which the insurer undertakes, in the event of breach by the policyholder of its legal or contractual obligations, to indemnify the insured by way of compensation or sanction for the damages suffered.

It is a guarantee that is given to ensure compliance with a legal or contractual obligation. Its objective is to assure one of the parties to a contract or agreement that the agreed obligations will be fulfilled.

It guarantees in favour of the Insured the compensation for damages that may be caused by the breach by the Contracting Party of a legal or contractual obligation within the amounts and conditions covered. The coverage focuses on obligations to perform, excluding payment commitments such as loans or financial obligations.

Tender or Provisional

It is the guarantee necessary to access public tenders to carry out works or a service contract. Also known as “bid” guarantees, “provisional” or “offer bond” since they will guarantee the constitution of another performance that will be the ones that will take charge of the fulfillment of the contract itself.
The bidding or offer guarantee ensures, therefore, the formalization of the contract which is the object of the bidding or auction; this is linked to the following performance guarantee.

Performance or Definitive

The contract is awarded to the company after winning a tender that has previously been presented through a public tender for the performance of the works or service.
This bond is intended to cover damages caused to the beneficiary as a result of not fulfilling its obligations.

Renewable energy

The guarantees that are required by a renewable energy developer, when applying for a specific a project, which wants to start the administrative proceeding with the applicable public body.
One of the first steps is to provide a guarantee (surety bond) when carrying the request for access to connection to the electrical grid (connection point) to the corresponding electricity company.