Surety bonds for contractors in Pune
A surety bond is a guarantee issued by a general insurance company in place of a bank guarantee. For contractors in Pune, it means no fixed deposit as margin and no use of the bank’s non-fund limit – both stay free for working capital. Keiri Tech’s Funding Desk checks your eligibility, prepares the proposal and gets quotes from insurers.
Who issues tenders in Pune
Contractors here mostly work for Pune Municipal Corporation, PCMC, PMRDA, Maharashtra PWD, MIDC, MSRDC, Maha-Metro and NHAI. Pune contractors bid for road, metro, water supply, drainage and building works around the city and on highway packages. NHAI and other central bodies accept surety bonds; for PMC, PCMC, PMRDA and other state bodies the tender clause decides.
Bonds we help with
| Bond | Used for | Usual size |
|---|---|---|
| Bid bond | In place of EMD / bid security | About 1%–2% of the estimated contract value |
| Performance bond | Performance security after award | About 3%–10% of contract value |
| Advance payment bond | Against mobilisation advance | Equal to the advance |
| Retention money bond | To release money held back from bills | Equal to the retention |
Who gets approved
- At least three years of completed works of a similar kind
- Audited financials with profit and positive net worth
- No recent default, restructuring or invoked guarantees
- A contract whose employer accepts insurance surety bonds
Documents
- Audited financials for 3 years and current-year provisional figures
- Work orders and completion certificates
- List of works in hand
- Tender document or letter of award
- Bank sanction letters and list of guarantees outstanding
- KYC of the firm and promoters
Common questions
Can I get a surety bond in Pune?
Yes. The bond is issued by an IRDAI-licensed general insurer, not by a local branch, so it does not matter where in Pune you are. Our team at Kamala Arcade, JM Road, Shivajinagar, Pune 411004 prepares the proposal and collects quotes; you sign the indemnity and pay the premium.
Will my tender accept a surety bond?
Central government departments and bodies such as NHAI accept insurance surety bonds like bank guarantees, subject to the tender. For Pune Municipal Corporation, PCMC, PMRDA and other state bodies, read the bid security and performance security clause or send us the tender and we will check.
Is margin money or an FD needed?
No. Insurers do not ask for margin money. The contractor, and usually the promoters, sign an indemnity to repay the insurer if a valid claim is paid.
How much does it cost?
Roughly 0.5% to 3% of the bond amount a year, depending on the bond type, your financials, track record and the project.