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Assuring your customers that work carried out will be completed
The ECA Bond provides, subject to the terms and conditions of the Scheme, ECA Members’ customers with an assurance that if their employment as an ECA Member is terminated for a specified reason, such as the insolvency of your business, the additional cost of completion will be met by the ECA’s insurer to a maximum limit of ten per cent (10%) of the contract value, as shown on the certificate, or £100,000 whichever is the lesser.
Bond certificates are available to Members from the ECA’s website. Values change on an annual basis and in proportion to Member’s turnover declarations at the start of each new calendar year; once turnover has been declared and subscription fee paid to the ECA. It covers all contracts entered into for the remainder of the calendar year.
Using the Bond
The Bond certificate has been designed so that a generic certificate can be obtained and displayed or a version attached to a customer’s quote or tender by way of an example as to what is being offered. Once a contract has been entered into, a signed copy of the Bond must be exchanged to give effect to its terms and conditions. Customers can then make a claim should the need arise.