The Compliance Bonds belong to the Branch III of the Bail Bonds in Mexico, the Administrative Bonds. This branch includes the following types of bonds: Contest, Advance, Compliance, Good Quality and Hidden Defects.
Objective of the Compliance Bonds
The main objective of the Compliance Bonds is to guarantee that the obligations stipulated in a contract are fully or partially fulfilled, such contracts can be: work, purchase order, order or lease.
The Compliance Bonds guarantee that the company that provides a service will perform the work as agreed, or otherwise, the contracting party has the right to validate the Compliance Bond, then functioning as a kind of compensation for damages due to non-compliance
Normally, the Compliance Bonds are issued for 10% of the total value of the contract whose compliance is endorsed. This type of bond guarantees various obligations borne by the debtor: the conventional penalty, compensation for non-compliance or timely compliance.
When a payment claim is received against a Compliance Bond, the first thing that is done is to verify if it was filed within 180 days after the obligation became due, in accordance with the provisions of the Federal Law of Institutions of Bail bonds If this was done in a timely manner, the surety verifies the existence of the obligation and then corroborates whether the breach was total or partial. In case a part of the obligation has been fulfilled, the proportion fulfilled will be subtracted from the total amount of the bond.
The Compliance Bond process with us is simple, fast and at a low cost. It is necessary to fill out the form that appears on our page and send the necessary documentation to start the process.
If you are looking to guarantee the fulfillment of an obligation, call us! Our professional advisors in Insurance and Surety can support you.