MOBILIZATION ADVANCE BOND
When the owner/employer is pre-financing a contractor by an advance payment on contract, Mobilization Advance Bond is issued on behalf of a contractor and to secure the project owner. Thus, this bond secures the Principal against the amount advanced by him to the contractor for the mobilization of contract work.
MAB/APB insurance witnesses that the contractor shall use the advance for a specific purpose and if they fail or commit default in fulfillment of any of their obligation for which advance payment is made the insurer will pay to the employer the amount in respect of which they have so failed but not exceeding the aforementioned sum.
As and when the said advance payment is adjusted against payment(s) from the running bills of the Contractor then this guarantee shall automatically stand reduced to the extent of such adjustment(s).
DOCUMENTS/INFORMATION REQUIRED
- Proposal Form (copy attached), duly completed by the Insured.
- Request Letter
- Copy of Contract
- Copy of CNIC
- Bank Statement current six months
- Copy of Bond Specimen
- Undated Cheque duly signature verified by said bank (equal to value of Bond/Guarantee)
- Premium Cheque
- Copies of CNIC of Witnesses
- Company’s Profile
- Cash margin 10%
- Copy of Award Letter
- Copy of Company Balance Sheet
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