Contract & Tender Security
Advance Payment Guarantees
Unlock mobilisation funds while protecting the payer.
What It Is
An Advance Payment Guarantee (APG) protects a project owner who releases mobilisation or advance funds to a contractor before work begins. In exchange for receiving the advance, the contractor arranges an APG so the owner can recover the funds if the contractor fails to perform, becomes insolvent, or does not apply the advance towards the contracted works.
APGs are commonly required for large infrastructure, construction, and supply contracts where contractors need upfront capital to mobilise labour, equipment, and materials before the project generates its own cash flow. The guaranteed amount typically reduces in proportion to work certified or goods delivered over the life of the contract.
For contractors, an APG is the mechanism that makes mobilisation funds available in the first place — without it, most project owners will not release advance payments.
Who It's For
- Contractors requiring mobilisation capital to start large projects
- Suppliers receiving advance payment for bulk orders
- Project owners structuring milestone-based payment schedules
- Firms delivering EPC, infrastructure, or capital equipment contracts
Key Benefits
- Enables access to mobilisation funds needed to start work
- Guarantee amount reduces as project milestones are met
- Structured against the specific advance payment schedule
- Reassures project owners that advance funds are protected
- Supports both local and cross-border contracts
How to Apply
Share the contract terms
Provide the contract clause governing the advance payment, its amount, and the reduction schedule.
Risk assessment
We assess the contractor's capacity to deliver against the advance and structure the guarantee accordingly.
Issuance
The APG is issued to the project owner, releasing the advance payment to you.
Typical Requirements
- Signed contract detailing the advance payment clause
- Company registration and financial statements
- Project implementation or mobilisation plan
- Note: requirements vary by facility size
Frequently Asked Questions
Ready to apply for a advance payment guarantees?
Share your contract or tender details and receive a structured response within one business day.