Performance bonds market hardens as fears of a recession loom
Construction firms seem to be seeing a hardening of the performance bonds market as insurers back away from providing bonds to small and medium-sized contractors, according to a recent report in Construction Enquirer.
Following the start to the easing of lockdown restrictions, with a focus on getting the construction industry fully up and running again, the difficulty of obtaining performance bonds could severely impact the ability of contractors to recover.
Some employers or main contractors require a performance bond to be in place before granting a tender and the rate and other security required depends on the financial strength of the contractor, which is why some smaller firms may be losing out.
However markets are still available!
Here at PMJ Risk Solutions Ltd, we’re working hard to assist our clients in placing business across all lines and not just performance bonds. All our bond markets are still writing bonds for contractors of all sizes.
If you are having difficulty obtaining performance bonds, or have any enquiries regarding surety on any aspect of Construction Insurance please get in touch with us on 020 8588 9880.