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Undertaking Bond

$100.00

A bond requirement by the main contractor upon allocation of “Man-Year Entitlement” (MYE) to its sub-contractors to employ work permit holders. This indemnifies the main contractor for expenses incurred relating to foreign workers (e.g. foreign worker levy, salary, etc) arising from financial default of the sub-contractors. MYE applies to construction and process sector workers from Non-Traditional Source Countries (NTS) + People’s Republic of China (PRC).

Documents Required

  • Letter of Award from Main Contractor
  • Bond Format Required by Main Contractor
  • Number of MYE Allocated
  • Bond Amount Per Worker
  • Bond Duration

Applicable to

  • All Tenants

Case Study
ABC Logistics entered into a sale and leaseback agreement with XYZ REIT. As part of the 7 year agreement, ABC has to put up deposit of 7 months amounting to $5 million. To reduce the impact such a situation has on ABC Logistics’ cash flow, they will then place a Rental Bond issued to XYZ REIT, as opposed to utilizing their cash amount.
Find a Broker
For more information on Undertaking Bond, please contact us at:
awg@awginsurance.com
SKU: SG-11 Category:

Product Description

A bond requirement by the main contractor upon allocation of “Man-Year Entitlement” (MYE) to its sub-contractors to employ work permit holders. This indemnifies the main contractor for expenses incurred relating to foreign workers (e.g. foreign worker levy, salary, etc) arising from financial default of the sub-contractors. MYE applies to construction and process sector workers from Non-Traditional Source Countries (NTS) + People’s Republic of China (PRC).

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