Construction guarantee
Surety bonds replace the retentions demanded by building owners: you keep your cash flow, from the start of the works to the end of the warranty period.
Two minutes is all it takes: tell us who you are and what needs covering. We come back with compared quotes.
The essentials
On most Swiss construction sites, the building owner requires security from the contractor: a performance guarantee during the works, then a works guarantee after acceptance to cover any defects. Without a guarantee certificate, part of the instalments or of the final account is withheld, money missing from your business for years.
The construction guarantee replaces these retentions with a surety bond: a guarantor commits to the building owner up to the agreed amount, and you collect your invoices in full. Your cash remains available for wages, suppliers and the next projects, without tying up your bank facilities.
These securities run for a long time: the SIA 118 standard provides for a two-year warranty period from acceptance, and the contractor remains liable for hidden defects in an immovable structure for five years. A certificate whose amount, duration or beneficiary departs from the works contract risks being refused by the building owner.
What this insurance covers
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Performance guarantee
Assures the building owner that the works will be completed in accordance with the works contract, even if the contractor defaults.
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Works guarantee
Covers defects identified after acceptance, throughout the agreed warranty period, two years in contracts governed by the SIA 118 standard.
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Replacement of retentions
The surety bond takes the place of the retention: your invoices are paid in full, and nothing stays blocked with the building owner.
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Advance payment guarantee
Secures the advance payments made by the building owner before the works begin or the materials are delivered.
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Bid guarantee
Some competitive tenders, public ones in particular, require security from the moment the bid is submitted; it attests to the seriousness of your commitment.
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Surety facility
For firms running one site after another, an overall limit agreed in advance allows each certificate to be issued quickly, project after project.
Who it is for
- General and total contractors delivering turnkey structures.
- Structural and finishing trades subject to the security required by building owners.
- Installers and building services firms: heating, ventilation, plumbing, electrical.
- Tradespeople whose contracts provide for a retention on the final account.
- Companies bidding in public tenders or working under SIA contracts.
How we support you
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Analysing your risks
What you have, what is missing, what overlaps: an honest assessment.
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Competitive tenders
Several insurers approached against a precise specification, compared item by item.
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Long-term follow-up
Set-up, renewals, claims: a single point of contact, year after year.
Frequently asked questions
What is a works guarantee under the SIA 118 standard?
After acceptance of the works, a warranty period runs, two years in contracts governed by the SIA 118 standard, during which the building owner may demand that defects be remedied. The works guarantee gives the owner financial security during this period: instead of withholding part of the final account, they receive a surety bond certificate. For hidden defects in an immovable structure, the contractor’s liability is time-barred after five years under the Swiss Code of Obligations.
What is the difference between a performance guarantee and a works guarantee?
The performance guarantee covers the construction phase: it protects the building owner if the contractor fails to complete the works or to honour the contract. The works guarantee takes over after acceptance and covers defects that emerge during the warranty period. Both may be required in succession on the same project, each with its own amount and duration.
Does a surety bond really replace the retention?
Yes, provided the works contract allows it or the building owner agrees, standard practice on Swiss construction sites, and regulated by the SIA 118 standard. The certificate must match the contract requirements exactly: amount, duration, beneficiary and call conditions. We check these points before issue, to avoid a refusal that would delay payment of the final account.
How much does a construction guarantee cost?
The premium is calculated as a percentage of the guaranteed amount per year of cover; it depends on the company’s financial position, the guaranteed volume and the duration. It generally remains well below the real cost of a retention: part of the final account tied up for two years weighs far more heavily on cash flow. We compare quotes from several guarantors and negotiate a facility suited to your volume of projects.
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Jules Rossier, non-tied insurance intermediary within the meaning of Art. 45 of the Insurance Supervision Act (ISA), registered with FINMA under no. F01581788.