This type of Construction Bond is mainly utilized for construction sites outside of South Africa. This type of Construction Bond would be issued in the case where the Employer is pre-financing a Contractor by advance payment on the Contract; he may secure the repayment of the advance using this bond.
The amount guaranteed should decrease in accordance with the portions of work performed. Usually this is reflected by a fixed percentage in the monthly bills. These are only issued in connection with Performance Guarantees.