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Variable Construction Guarantee

Variable Construction Guarantee

When a contract is awarded, a possible option is to put in place a Variable Construction Guarantee equalling on average 10% of the contract value.

The JBCC Principal Building Agreement and GCC makes provision for the Variable Construction Guarantee option.

The Variable Construction guarantee usually expires upon the date of issue of the Final Payment Certificate. A fixed expiry date could be negotiated with the employer, but this must appear on the original guarantee.

How we work

Blenheim has specific expertise in raising insurance-backed guarantees from leading insurers. The insurers with whom we deal are reputable and accredited with all employers in South Africa including all municipalities, ESKOM Ltd, Transnet SOC Ltd and blue-chip listed entities.

By working closely with leading specialist insurers, we provide facilities at affordable collateral levels (if your financials are strong then collateral may be waived) and our premium rates are very competitive.

A quotation usually takes 24 hours to finalise, subject to all information being received and, with all the correct documentation completed and information submitted, the facility can be put in place. With the facility in place, a guarantee is issued within 24 to 48 hours. Your facility can then be used for all your future guarantees up to a prescribed facility limit and multiple guarantees can be issued.

Banks normally take 100% collateral and still charge fees to have such a facility in place. Our insurers offer lower collateral requirements and you pay only for the guarantees you require. There are no annual fees for having a facility in place via Blenheim.

A guarantee facility separate from the bank will enable your company to grow since your financing can be handled by the bank and we do your guarantees.

Unique benefits Blenheim can offer you as a client:

  1. Free Letter of Intents when requesting via our website, hassle free
  2. Immediate Guarantee Exposure Reports generated via our tailored made software as and when required
  3. Dedicated account manager assigned to you once you become a client
  4. Free delivery of original guarantees to the physical address of choice.
  5. Yearly review of your Guarantee Facility to ensure you have and or maintain the best rates.
  6. Same day or 24 hour turnaround on all your queries.
  7. Hassle free and timely collateral reimbursements.

Get FREE professional advice on any query you may have by providing us with your details. Let us know in the message box whether you would prefer help via an email, phone-call or webinar.
 

Blenheim are proud Gold Sponsors to the Master Builders Association (MBA) East Cape. The MBA East Cape and Allied Industries Association has served its members and the building industry for over 100 years.

Blenheim are proud Gold Sponsors to the Master Builders Association (MBA) East Cape. The MBA East Cape and Allied Industries Association has served its members and the building industry for over 100 years.

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