The Insurance and Surety Working Group for the Construction Leadership Council (CLC) COVID-19 Task Force has published guidance to help small and medium-sized enterprises (SMEs) obtain bonds in the current climate.
Bonds are often a key contractual requirement and an inability to access or secure them can prevent projects from going ahead as planned.
COVID-19 has led to uncertainties surrounding reduced productivity and risk, which has impacted on the accessibility of bonds in the supply chain.
The guidance aims to provide practical advice and considerations for discussions with brokers and providers when seeking bonds.
It includes recommendations on the information that should be collected and presented.
Commenting on the guidance, James Butcher, head of policy and research at the National Federation of Builders (NFB), said: “COVID-19 has led to unprecedented changes as to how we deliver construction projects and obtaining the right financial product is key.
“To this end, the CLC has produced advice specifically for accessing all bond types through the surety market.
“Its aim is to assist SMEs as they navigate the challenges arising from COVID-19 and discuss solutions with their professional advisers.
“As we look towards economic recovery, it is vital that firms are able to invest in their businesses for the long-term, in order to deliver the world-class construction our country so desperately needs.”
The Construction Leadership Council’s guidance on obtaining bonds can be downloaded here.
