Scenario
Construction Performance Security
End-to-end flow for bid, performance, and defects liability guarantees with extensions and partial releases.
Applicant
Head contractor or subcontractor requesting the guarantee.
Beneficiary
Principal / client receiving and enforcing security.
Issuer
Financial institution issuing the guarantee.
Required documents
- Contract/letter of award (incl. security clause)
- Scope of works / programme
- Requested amount, reduction schedule, expiry or defects period
- Any special conditions or approved wording
- Go to CDD
Register & Verify (CDD)
Verify authorised signers and company details prior to submitting security requests.
- Organisation profile
- Director/authorised signatory verification
- CDD approval confirmation
- Open ARCgx
Create Security Request (ARCgx)
Capture project, contract, value, and wording. Attach the award letter/contract.
- Add beneficiary and project references
- Select performance/BG type (bid → performance → defects)
- Internal approvals (commercial/legal) if required
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Issuance & Acceptance
Issuer delivers digital security; beneficiary is notified to review and acknowledge.
- Instant format/issuer checks
- Accept/decline with recorded reasons
- Automated updates to applicant
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Lifecycle & Reductions
Handle extensions, partial releases (milestones), and defects period handover.
- Extensions via routed approvals and timestamped updates
- Partial release against milestones or certificates
- DL period conversion or replacement security
What you get
- Clear trace from bid to performance to defects liability
- Milestone-based partial releases reduce cash lock-up
- Instant verification reduces back-and-forth with the principal
- Structured extensions and releases with audit evidence