When a Bond Policy is involved and a breach of contract is presented by credit, the beneficiary of the same has the right to issue the corresponding “claim”. In addition to immediately notifying the Surety company, it is necessary to present a series of documents proving this breach.
In order to prove the existence and enforceability of the guaranteed obligation, that is, breach of contract, it is necessary for the Beneficiary to carry out a good administration of his deposit at all times.
For its part, the BP company has the obligation to inform its credit that the Beneficiary of the Bond Policy filed a claim for non-compliance. With this, the credit will be able to say if it agrees or not with the claim.
How to properly administer a Bail Policy?
In order for a Bond claim to proceed properly, it is necessary that the Beneficiary supervises, from the beginning of the term of the main contract, that the contractor complies with all the agreed obligations and within the agreed deadlines. In the event that a breach occurs, notice must be given immediately to the Surety (Preventive Notice).
Once the notice is given, the necessary documents must be submitted to prove the requirement of the guaranteed obligation. These documents vary according to the type of bond and the origin of the claim depends to a great extent, so the importance of always carrying a good administration of the Bond Policy .
What documents should be presented in the case of a Compliance Bond?
- Bond policy.
- Work contract.
- Estimates and Advances.
- Rescission of the work contract.
- Settlement of the work contract.
- Interpellation to the Fiado for the debt that the settlement gave.
Because the Surety Sector is extremely careful and strict, it will only pay the claims that actually apply, as long as the Beneficiary complies with the requirements, formalities and terms established by law. For this reason, it is very important that the Beneficiary of a Policy of surety manage it correctly and from the moment the main contract is reviewed.