Mobilization Advance Bond is required in cases where the oblige (owner) is pre-financing a contract; he may secure the repayment of the advance by means of a bond called Mobilization Advance Bond.
The amount guaranteed should decrease in accordance with the portions of work performed. By this bond, the Insurance Company guaranteed the owner correct utilization of advance.
In case contractor fails to fulfill their obligation and commit default the insurance company will pay the amount to the owner which is outstanding at that time.
- Risk Covered
- Key Points
- Information Required
- Profile of the Company & Contractor List of contracts completed in 5 years
- Certificate of Engineering Council
- Bank statements, Balance sheets
- Nature/ Location of Project