Maintenance Guarantee Insurance (or Defects Guarantee) is a…
Maintenance Guarantee Insurance (or Defects Guarantee) is an insurance instrument that guarantees the contractor’s fulfilment of its obligations during the maintenance period following the completion of works or handover of the project. It protects the beneficiary against the risk that identified defects, deficiencies, or issues are not rectified during the warranty period, providing financial compensation in accordance with the terms of the guarantee.
In line with international contracting practices, Maintenance Guarantee Insurance serves as an effective alternative to bank guarantees, offering the beneficiary the same level of security while enabling contractors to preserve their liquidity and financial capacity.
