The Leadway Advanced Payment Bond is intended to provide comfort to the principle that the payment made will be utilized by the contractor in line with the underlying contract. This policy guarantees the principal that, if the contractor defaults, the principal will be able to recover its money. Most contractors require an advance payment – usually a percentage of the contract sum – to enable them to mobilize to site and kick start the project.
The bond covers the funds given to the contractor by the principal as a project mobilization payment, and it serves as a guarantee to the principal that the funds will be judiciously applied to the contract.
In order to facilitate assessment and issuance of the bond, we require a few pieces of financial and technical information and documentation to accompany the request for cover.
Our sample Advance Payment Bond can be downloaded here.