DRS supports clients in managing their bond capacity, ensuring that the ability to bond forthcoming immediate contracts is never compromised.
For clients with regular bond requirements, it is extremely important to manage not only live exposure (issued bonds) but also quoted exposure (quotations given for tenders).
Key aspects include:
- DRS’ tailored software platform within Blueprint OneWorld ensures that our clients avoid potential pinch points in capacity well before they happen;
- Commentary in the suitability of the bond wording and ensuring the bond is equitable to all parties.
- Confirmation of surety;
- Leveraging the DRS library of previously accepted bond wordings to assist our clients in negotiations with employers and their agents;
- DRS expertise in advising employers and their agents on the acceptability (technical and commercial) of proposed bond wordings including suitable amendments;
- Budget certainty at tender stage for you.
Surety bond facilities are ‘off balance sheet’ and for accounting purposes are treated as contingent liabilities. This enables DRS to obtain multiple facilities from DRS Approved Sureties. Facilities are typically uncommitted and security is often limited to a counter indemnity. Capacity is linked to your financial covenant and not unlimited. DRS understands the importance of this critical resource and is focused on maintaining suitable liquidity at all times. DRS constantly monitors all bonded works from tender stage through to issue of the bond, rigorously checking all details, as even small amendments may impact capacity.
DRS will actively manage this process with you and draft your letter of release. For bonds expiring beyond completion of works, we will automatically contact you at the estimated date of contract completion to enable any additional costs to be calculated in preparation of your final account negotiations, whereas standard surety practice is to wait until the defects liability certificate has been issued, which can make it too late to negotiate additional costs.
Submission to Market
Surety is a highly transactional business. For successful outcomes, in often time critical situations, it is important that all information received from you is understood, validated and transparent. All DRS presentations make sure that your company and its culture, financial strength, vision, abilities and successes are communicated effectively.