Market bonds
& construction bonds

Contract bonds & construction

The surety market is changing. The historical bank guarantors, subject to new and increasingly restrictive prudential rules, are today less present in market or legal surety issues for their corporate customers.

For your domestic and export markets, we negotiate market surety capacities on your behalf with 1st^{ranking surety insurers and assist you in setting them up.}

How it works

A guarantor insurer can offer a line of credit enabling you to secure all your activities on public or private markets in France and abroad.

Very common in the building and civil engineering sectors, as well as in the manufacturing industry, contract bonds in the form of Caution Solidaire or Garantie à Première Demande (GAPD) ensure that the contracting authority is compensated in the event of non-fulfillment of the contractual obligations of the prime contractor, in the context of the award of a contract.

Whether for a domestic public or international beneficiary, the Garantie A Première Demande (GAPD) enables access to a contract, to optimize cash flow by substituting for a sum of money immobilized as collateral, or more simply to guarantee a payment (supplier, rent ...) or any other obligation linked to a commercial transaction or contract.

Market bonds: the key to securing your domestic and international contracts

• Bid Bond or Bid Bond
  to be presented to respond to a call for tenders.
• Down payment Bond or Down payment Bond
  guarantees repayment of the advance paid.
• Sub-contractors payment bond or Sub-contractors Bonds
  guarantees the remuneration of sub-contractors involved in the project (Article L 231- 13 of the construction and housing code).
• Caution de retenue de garantie or Warranty Bond
  insures the project owner's withholding of payment.
• Performance Bond or Performance Bond
  guarantees performance of the contract according to the original term.
• Supplier Payment Guarantee
  covers the settlement of your export purchases.

Construction bonds

Supporting you at every stage of your construction program

At every stage in the contractualization of construction projects, operators must provide proof of financial guarantees to secure the progress of operations and financial flows.

• The Garantie Financière d'Achèvement is a guarantee of repayment or completion of a real estate construction or renovation project. This guarantee protects the purchaser in the event of default by the property developer (art L261-1 of the French Construction and Housing Code).
• The VEFA (vente en futur d'achèvement), coupled with the GFA, provides the purchaser of a property program with the certainty that the guarantor will provide the financing for the successful completion of the building. It is also known as a Vente d'Immeuble à Rénover (VIR).
• Garantie du contrat de Promotion Immobilière (CPI) when the project owner entrusts the realization of a real estate project to a developer via a real estate development contract, known as a mandat d'intérêt commun; this guarantee ensures proper performance of the contract in the event of default by the developer.
• Contractor's payment guarantee to meet the obligation laid down in Article 1799-1 of the Civil Code, under a private works contract, to guarantee sums due to the contractor, in the event of default by the project owner.
• Guarantee of immobilization indemnity which prevents the developer from tying up large sums to validate promises of sale.
• Guarantee of payment of Rent or of taking possession within the framework of the signature of a BEFA (Bail en l'Etat Futur d'Achèvement).

Choose AU Group Caution, to benefit from the services of a high-performance team

• The provision of new Surety capabilities through AU Group's access to specialized construction and market surety guarantors.
• A reactivity in the execution of mandates for the study and placement of surety lines.
• The provision of online tools for the issuance and monitoring of e-c sureties.
• Taking charge of complexinternational issuance schemes (fronting).
• Advice in drafting tailor-made deeds (amount, duration, specific clauses).
• Syndicated surety lines set up between several insurer or bank guarantors on specific projects or day-to-day drawdowns.