Highlights
- Secures the delivery of ships (and other vessels) under shipbuilding contracts and the reimbursement of any advance payments in the event of non-delivery
Best For
- Shipbuilders and shipyards
- Category: Contract
- Industry: Energy
- Group: International Group
Summary of Coverage
If you are a shipbuilder or shipyard, a performance bond provides a guarantee of your performance under the shipbuilding contract and guarantees that you will deliver the vessel to your client per the terms of the contract. If there is a default on the delivery of the vessel, the bond will provide security for your client’s additional costs involved in completing the vessel, subject to the stated maximum value of the bond.
Refund bonds provide security for the potential reimbursement of your client for any advance payments made during the project, should you default on your obligation to deliver the vessel. Refund bonds may be issued each time the ship owner makes an advance payment to you throughout the project and prior to delivery of the ship (or other vessel).
