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| Frequently Asked Questions
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| 1.
| What is a Bond?
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| A Bond is an agreement between a Surety company like BPI/MS and you, as the Principal. In this agreement, the Surety Company guarantees your performance to your client or the courts.
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| 2.
| Are Bonds classified for different purposes?
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| Yes! BPI/MS offers a wide variety of Bond types that will surely meet your specific requirements to ensure you and your client's peace of mind. The two main classifications of BPI/MS Bonds are Surety and Fidelity
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| 3.
| What is a Surety Bond?
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| The BPI/MS Surety Bond provides you with the necessary guarantee to complete a contractual or civil engineering project. This is the most common Bond requirement of both contractors and project owners.
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| 4.
| Do you cover the entire process of construction?
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| Yes! With the BPI/MS Contractor's Bonds, you are assured that we guarantee your construction from start to finish. Check out these five types of BPI/MS Contractor's Bonds
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| a.
| BIDDER'S BOND
- guarantees that the successful bidder will enter into a contract and submit the necessary bonds in connection with the project.
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| b.
| PERFORMANCE BOND
- guarantees the completion of the project in accordance with the contract's terms and conditions. There are also performance bonds for the supply and delivery of materials as well as the obligation to provide service.
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| c.
| BOND FOR ADVANCE PAYMENT
- guarantees payment of the unliquidated portion of the advance payment granted in connection with the project.
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| d.
| GUARANTEE WORKMANSHIP BOND
- guarantees the correction of defects which may be found in the materials and workmanship used, within one year from acceptance of the project.
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| e.
| PAYMENT BOND
- guarantees the payment of unpaid claims for labor employed and materials used in the completion of the project.
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| 5.
| What is a JUDICIAL BOND?
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| Judicial Bond is another type of Surety Bond. This is often required during judicial proceedings. To best serve your purpose, BPI/MS can offer you the different kinds of BPI/MS Judicial Bonds.
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| a.
| ADMINISTRATOR / EXECUTOR'S BOND
- guarantees that an estate's executor or administrator will perform his duties and responsibilities as required by the law, in connection with the settlement of the estate of a deceased person.
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| b.
| GUARDIAN'S BOND
- guarantees that the person appointed by the court to take care of the properties of a minor or incapacitated person will perform his/her duties faithfully and lawfully.
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| c.
| ATTACHMENT BOND
- guarantees the return of any seized property and payment for any damages suffered by the aggrieved party because of the seizure of all properties involved in the litigation.
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| d.
| REPLEVIN BOND
- guarantees the return of the property under seizure by the court; and the payment of damages should the court decide in favor of the other party.
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| e.
| HEIR'S BOND (COURT FINANCING BOND)
- Answers for any claims filed by third parties who have been deprived of participation in the estate of a deceased person within a period of two years from settlement.
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| 6.
| What is the difference between a License Bonds and Permit Bonds?
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| Both, License Bond and Permit Bond, are required by the Government to guarantee compliance with the imposed governing laws, rules and conditions. However, License Bonds is granted to any person or entity to operate a particular business in the country while Permit Bonds is granted to exercise a particular privilege.
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| 7.
| What does a Customs Bond guarantee?
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| The Custom Bond is another government required Bond. This guarantees the payment of customs duties, internal revenue taxes and other charges due on imported articles.
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| 8.
| What are the documentary requirements for Bonds application?
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| Initially, we will request you to submit the following documents for us to appropriately review your application.
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| A.
| For Corporate Applicants:
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| Fully accomplished Bonds application form (Available in all BPI/MS branches), plus
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| S.E.C registration
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| Articles of Incorporation and By-laws
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| Board Resolution authorizing named officer to sign the bond and other related documents
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| List of current officers/directors certified by corporate secretary
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| Corporate Information Sheet
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| Latest Audited Financial Statements or Annual Report
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| List of Completed Projects
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| List of On-going Projects
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| Cosigners
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| Cosigners' Information Sheet
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| B.
| For Individual Applicants:
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| | 1.
| Fully accomplished Bonds application form (Available in all BPI/MS branches), plus
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| D.T.I. registration
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| Latest audited financial statements
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| List of completed projects
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| List of on-going projects
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| Cosigners' Information Sheet
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| For a specific type of bond, you should submit the following documentary requirements:
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| A.
| For Bidder's Bond
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| Photocopy of Invitation to Bid or Notice to Bidders
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| B.
| For Performance and/or Payment Bond
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| Contract Documents (Construction Contract, Service Contract, Purchase Order, Job/Work Order, Notice to Proceed, Change/Variation Order, Letter of Award)
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| C.
| For Advance Payment Bond
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| | 1.
| Photocopy of Contract
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| Photocopy of latest Accomplishment Report
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| D.
| For Guarantee Bond
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| Certificate of Completion and Final Acceptance
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| Photocopy of Signed Certificate of Substantial or Final Completion and/or Acceptance of the Project
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