Bid Bonds or Letter Of Intent.

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Guarantees Made Simple & Affordable
GuaranteeCO is a specialist guarantees brokerage which is part of the Frog Financial Group. The Group has a rich history, spanning over a Decade. Our humble beginnings have installed enduring values that have kept us growing.

What Is a Bid Bond or Letter Of Intent.

When a contractor, or the 'principal', is bidding on a tendered contract with public authorities or private owners, a Bid Bond is purchased.
The Bid Bond pre-qualifies the principal and provides the owner or general contractor with the necessary security, requiring a guarantee that the principal will enter into the contract if it is awarded. In essence, it ensures that, if the contract is awarded, the Bidder (Constructor) will enter into the said agreement and provide the required Performance Bond.
If the winning contractor fails to execute the contract or provide the required performance and/or payment bonds, the cash deposit will be forfeited in full or in part.


Build With Confidence-Backed by Guarantees
Backed by over 30 years of combined expertise, we pride ourselves on securing the lowest Facility Rates and offering highly competitive, cost-effective Collateral Rate structures.

As one of the first guarantors with established ties to international banks and finance corporations, we provide unmatched assurance and peace of mind to our clients.

Our commitment extends beyond financial solutions—we help clients reduce collateral requirements, control expenses, and preserve cash flow. This ensures they can establish sites seamlessly and achieve optimal productivity.

F.A.Q

A quote takes between 24 – 48 hours to finalize, subject to all information being received.
It depends on the strength of your financial statements. Premium can be between 1 to 3.5% ex vat paid upfront, pro-rata, per annum. The minimum invoice period is for 6 months.

Here is an example and is for illustration purposes only. Let’s assume you have won a R5,000,000 project requiring a 10% construction guarantee of R500,000 for 11 months. We will further assume that you qualify for 2% ex vat premium. The cost would be R500,000*2%/12*11 = R9,166.63 paid upfront and once-off.
It depends on the strength of your financial statements. Collateral can be anywhere between 0 – 30% of the guarantee value. On successful cancellation of the guarantee your collateral will be reimbursed with any interest accrued.

Contact Us

  • Alberton, South Africa

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