The bonds proposed by our company in France fall into three main categories:

1. Financial guarantees

Financial completion guarantees (GFA) for real estate developers

As a real estate developer of a Sale in the State of Futur A Completion (VEFA), the law requires you to provide the notary at the time of signing the deed of sale with a certificate of completion financial guarantee from a credit institution or an insurer.

Under this guarantee, MIC will ensure, in the event of financial default of the developer, the financing of the completion of the real estate programme, thereby protecting the purchasers.

Financial guarantees of completion for your road and other works of various networks (VRD) or renovation of a building (VIR) may also be made with MICs.

The guaranteed delivery at agreed price and time and/or reimbursement for individual home builders

For individual house builders, MICs issues two guarantees:

– The agreed price and time-limit (GL) delivery guarantee which guarantees the purchaser, in the event of the manufacturer’s failure, the risks of non-performance or incorrect execution of the work provided for in the contract (including delays).

– The money-back guarantee (GR) which guarantees, in the event of the manufacturer’s failure, the repayment of the advance payments made by the purchaser for the signature of the contract (up to a maximum of 5%) and the obtaining of the building permit (maximum 5%).

The Guarantee of Good Performance, under a Real Estate Promotion Contract (GBE CPI)

As a real estate developer, you are obliged to take out a guarantee covering the proper performance of your mission under a real estate development contract (CPI).

In the event of financial default, the guarantor shall defray all sums in excess of the agreed price as described in the property development contract.

The Guarantee of Good Performance, under a General Contractor (GBE CG) contract

As a general contractor, you can take out a guarantee to the owner of the project covering the proper performance of your duties.

In the event of a financial default, the guarantor shall bear the sums in excess of the agreed price as described in the contract of general contractor.

2. Payment guarantees

The Guarantee of payment to companies subscribed by the contractors

The developer must provide undertakings carrying out works with a payment guarantee for any private works contract of more than EUR 12 000 after deduction of the advance payments made at the time of the conclusion of the contract.

The guarantor will be obliged to pay the holder of the works contract if the latter demonstrates the financial default of the Master of Works and the certainty, payable and liquid of his claim.

Guarantee of payment of subcontractors subscribed to by the main undertakings

In accordance with the law of 31 December 1975 on subcontracting; as the main contractor, you must guarantee to your subcontractors the payment of all sums due under their subcontract.

In the event of default of payment by the principal undertaking, the guarantor shall pay all the sums before the subcontract.

3. Marche Bonds

Guarantee of capital compensation taken out by real estate developers

As a real estate developer or employer, when acquiring a property or real estate you must generally immobilize 10% of the amount of the sale, and pay the corresponding compensation to the seller in the event of non-fulfilment of the sale of your act.

In order to free up cash and avoid paying the required asset compensation to the seller, you can take out a limited amount and time-limited detention deposit with the transfer card from the seller.

In the event of your default, the guarantor will cover the payment of this indemnity.

Guarantee bond by construction contractors

In order to optimise your cash flow and allow you to collect 100% of the amount of your contract as soon as you deliver your work and not to suffer the usual 5% retention monies applied by the contractor, a construction company can take out a retention deposit that will allow the contractor to pay you without restraint.

In the event of a failure on your part to carry out the work properly, the guarantor will advance 5% of the contract amount to the owner of the work and you will reimburse it.

Deposit in advance payment subscribed by the owner

If an advance is needed to finance the start of your work, you can take out a deposit back payment, which will reimburse you for the advance in the event that the work is not performed.

Guarantee of submission in the context of a private or public contract for construction companies receiving a private or public tender

In order to guarantee the seriousness and competitiveness of your company vis-à-vis the project manager in a call for tenders, you can take out a tender guarantee, so that the latter can benefit from a sum fixed contractually in the event of non-performance of your contractual obligations.