About Us
Mat Capital Pty Ltd Pty Ltd was registered and established in 2018. It is privately owned Black Empowered Company and NCR accredited or registered credit provider institution that assists small to medium size contractors with contract credit guarantees such as performance sureties, retention guarantees, maintenance guarantees and advance payment guarantees.
- We strive to provide appropriate and affordable risk solutions to emerging contractors.
- Growth through networking, hard work and industry knowledge.
- Acting with honesty, consistency and transparency in everything we do.
When a contract is awarded, a performance guarantee normally equalling 10% of the contract value is required. This guarantees the performance of the contractor from the commencement of the contract up to completion.
- Specific expertise in raising performance guarantees from leading insurers which are approved by all employers in South Africa.
- FREE Professional Advice for all your construction guarantee queries by an experienced and knowledgeable team.
- FREE Letter of Intents to ensure you are always one step ahead in your tender applications.
- All draft and original guarantees issued within 24 – 48 hours.
- Dedicated account manager assigned to you, to ensure a personalised service.
- Timely and hassle-free collateral reimbursements.
- No annual fees.
Happy Clients It comes down to how our customer experiences the brand – and how that brand makes them happy.
Projects Covered
Years of experience With a combined experience of 12 years between management
Services
Mat Capital Pty Ltd Pty has strategic alliances and partnerships with compliant offshore insurance entities. We are proficient in the procurement and placement of guarantees and commercial insurance.
Performance Guarantee or Surety
A Guarantee Guarantee or Surety is issued as part of a bidding process by the surety to the project owner, to guarantee that the winning bidder will undertake the contract under the terms at which they bid. The cash deposit is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. The bid bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds
Letter of Intent
Letter of Intent is purchased when a contractor, or the ‘principal, is bidding on a tendered contract with public authorities and or private owners. The Bid Bond prequalifies the principal and provides the necessary security to the owner or general contractor, necessitating a guarantee that the principal will enter into the contract, if it is awarded. In essence it provides a guarantee that the Bidder (Constructor), if awarded the contract will enter into the said agreement and furnish the prescribed Performance Bond. A cash deposit is required which is subject to full or partial forfeiture if the winning contractor fails .
Advance Payment Guarantees
An Advance Payment Guarantee binds the supplier to use the advance payment for the purpose stated in the contract between the buyer / employer and the supplier. An advance payment provides the supplier with funds to purchase equipment or components, and/or to make other preparations. In general, the advance payment guarantee should contain a reduction clause that automatically reduces the amount owing in proportion to the value of the (partial) delivery .It only becomes effective once the advance payment has been received and is only issued in connection with Performance Guarantees.
All Risk Insurance
Once-off Contractors All Risk provides comprehensive cover for a specific project that your company undertakes over a specified period. Plant All Risks is not available for this type of policy.
Frequently Asked Questions
Why do I need a guarantee?
In a construction context there are a myriad of micro and macro-economic risks which could impact a projects success. This is where Guarantees come in – they are an important tool to mitigate the risk for the Employer and their project funders. The ultimate purpose of any guarantee is to cover the Employer for the increased costs of completion as a result of the non-performance or default of the Contractor.
What types of guarantee do I need?
• Performance Guarantees – which protects the Employer against the increased costs of completion as a result of non-performance. • Retention Guarantees – which enable the recovery of retention funds paid to address remedial works. • Advance Payment Guarantees – enables contractors to be prefinanced by making payments before the commencement of the contract. • Bid Bonds – which cover the costs of re-tendering or re-negotiating, if the awarded contract cannot be fulfilled by the appointed contractor.
Who are the parties involved?
There are typically three parties to a Guarantee: The Employer – also known as the “Principal Creditor” or the “Beneficiary” who awards a contract to the Contractor who is also known as the “Principal Debtor”. In order to attain the appropriatesecurity, the Employer will require the Contractor to furnish a Guarantee, this is where the Insurer comes in. The Insurer is also referred to as the “Guarantor” or “Co-Principal Debtor”.
What is the difference with a bank guarantee? A Construction Guarantee from an Insurer has several distinct advantages compared to a Bank Guarantee:
• Wordings can be tailored to your needs whereas banks are unlikely to accommodate bespoke wordings • Guarantees remain in force for the duration of the project whereas bank guarantees usually have a defined expiry date • No pledge is made towards a lending institution and so your borrowing capacity is not diminished whereas with the bank your line of credit will be diminished
What are the costs involved?
Please contact us to understand the costs that are involved.
Contact Us
Mat Capital
Mat Capital has two office but operate through out the country. Technology has made it easy for companies to expand their operations without increasing for physical Offices. our offices are in Polokwane and Pretoria
58-60 Landros Mare Street
Thabakgolo Building Third Floor
Polokwane, 0700
admin@mtcapital.co.za
+2767 677 0406
+2769 159 9610