Construction guarantee – give yourself a competitive edge

Every construction project is unique, with its own specific challenges and risks. In a highly competitive environment such as the Swiss construction industry, TSM's surety products can give you a decisive advantage.

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Construction Guarantees in brief

No retention

You receive full payment for your services - rather than a retention being held for the duration of the project, the funds are delivered to you. This means that you can allocate the full contract price to your cash flow. As there are no deductions or monies withheld, you have greater control over your finances, thereby facilitating the smooth running of your construction projects.

Preserve available cash

Preserving your cash flow is essential to the growth and stability of your business. With our Construction guarantee, your cash flow remains intact. Rather than tying up large amounts of capital in traditional bank guarantees, a TSM construction guarantee helps you free up the resources you need to seize new opportunities or deal with unforeseen circumstances.

Avoid legal disputes

Legal disputes can be costly, time-consuming, and damaging to your company's reputation. By opting for a TSM Construction guarantee, you significantly reduce litigation risk. In the event of a dispute, TSM actively intervenes on your behalf to seek amicable solutions. You have peace of mind knowing that our experts will work with you to ensure that problems are resolved quickly and efficiently, while preserving your business relations.

Less reliance on your bank

Our Construction guarantee provides you with a reliable alternative to traditional bank guarantees, giving your greater room to manoeuvre. That means greater flexibility in managing your projects, without the constraints often associated with bank guarantees.

Widespread recognition

Our Construction guarantee is widely recognised and accepted by all industry players. This widespread acceptance underpins and facilitates your contractual relations. Your partners, whether they are project owners or subcontractors, trust our guarantees, making it easier for you to do business.

A steel structure seen from below.

From uncertainty
to certainty.

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Shielding you from the unexpected

Selecting the most appropriate protection for each stage of your construction project requires knowledge and understanding of the complexities of guarantees. While first-demand guarantees are commonly used to secure advance payments or to ensure that work is properly carried out, the surety bond is a joint and several guarantee that is mainly used to cover post-delivery defects. At TSM, we will guide you in selecting the best form of guarantee for your specific needs.

Surety bond
A surety bond is a solid form of guarantee that operates in the event of failure to fulfil contractual or legal obligations. Critically it offers security in the event that the contractor cannot perform or defaults on its obligations, whether it be after receiving notice to perform or in the event of insolvency. It is governed by the Code of Obligations, and offers solid protection for project owners, giving them the assurance that the project will be properly carried out.

First demand guarantee
The first demand guarantee is an immediate and irrevocable form of guarantee. The guarantor – in this case TSM - undertakes to honour the contractual obligations at the first request of the beneficiary, without seeking to contest or verify the legitimacy of that request. It offers optimum security for the beneficiary as the guarantor has very little defence against a call on the guarantee.

Build with confidence.

Our types of guarantee

Each phase of a construction project has its own challenges and needs. We understand this and have developed a comprehensive range of bonds specifically designed to meet the particular needs of each stage of your construction project.

We offer solid, reliable support every step of the way, whether you need to guarantee an initial deposit, ensure that standards and deadlines are met, or that there are no defects in the completed work.

Overview of our guarantees

Object Purpose Special features
Advance payment bond

Advance payments


Protect the beneficiary of the guarantee against misuse of advance payments or deposits made in connection with the works contract.

Special features

The guarantee becomes effective upon receipt of the advance payment. The duration of the guarantee depends on the terms and conditions of the contract. This guarantee is generally joint and several, but may often be required on a first demand basis.

Performance bond

Completion of the work according to the contract and within the deadlines.


Cover claims of the project owner in the event of non-compliant execution of the work (construction, installation, or execution).

Special features

The guarantee becomes effective upon the signing of the works contract, or when the work begins. The duration of the guarantee is fixed until completion or acceptance of the work. This is often a first demand guarantee.

Structural warranty (also known as latent defect or building warranty)

Hidden defects


Guarantee in the event that the contractor is unable to fulfil, or encounters financial issues that preclude it from fulfilling, its obligations to repair defects discovered after acceptance of the work.

Special features

The guarantee begins after acceptance of the work. The amount of the guarantee is normally 5% or 10% of the cost of the work during a period of 2 to 5 years. It is usually a joint and several surety.

Your construction guarantees in a couple of clicks

Don't get bogged down in complex procedures or endless paperwork. Our user-friendly online service is a hassle-free way to manage, edit and view your construction guarantees in just a few clicks. Moreover, as your data security is of prime importance to us, you can use the service with complete peace of mind.

Reduce your administrative costs
Forget about the administrative complexity and hassle involved in managing your guarantees. You can save time and reduce the indirect costs of paperwork by centralising and automating processes, leaving you free to concentrate on what's really important: successfully completing your construction projects.

Access the platform at any time
We recognise that the demands of the construction industry don't end when the office closes. That's why our platform is accessible 24/7, to give you the flexibility you need to manage your guarantees whenever you want, wherever you are. Everything you need is at your fingertips, day or night.

Stay informed in real time
Information is the key to success. Any changes, new guarantees or updates are displayed instantly on our platform, so you always have access to information in real time on issued guarantees, your premium deposit balance and your available guarantee limit. This means less uncertainty, enabling you to make informed decisions in the best interests of your projects.

The foundations of a future building project.

Simplicity and efficiency
– a winning combination!

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Frequently asked questions

Do I have to have other insurance policies with TSM to benefit from the construction guarantee?

No, this is one of the advantages at TSM. There is no need to take out another policy in order to benefit from a guarantee.

What's the difference between a surety bond and a first demand guarantee?

The surety bond is a robust guarantee that operates in the event of failure to fulfil contractual obligations, whether after service of notice to perform or in the event of insolvency. This is a guarantee governed by the Code of Obligations. It offers project owners solid protection, giving them the assurance that the project will be properly carried out.

A first demand guarantee guarantees immediate and undisputed intervention. TSM undertakes to meet its obligations upon receipt of the beneficiary's first request, without questioning the legitimacy of the request. This provides maximum security for the beneficiary, as the mechanism is designed to strictly limit the guarantor's defence against a call on the guarantee.

How soon can I expect a response after applying for a guarantee?

TSM will try wherever possible to process applications within 3 working days. However, you should bear in mind that additional information is often required as part of our risk analysis procedure.

Does TSM impose a limit on the amount it can guarantee for a project?

Yes, guarantee limits are set on a case-by-case basis, depending on the soundness and financial strength of the insured company.

What in particular does TSM require to carry out a risk assessment?

The full balance sheet for the last 3 years, signed by the auditor or fiduciary company, and an extract from the office for debt proceedings, issued within the last 10 days.

Peace of mind for when the unexpected happens

TSM product lines that could be of interest to you

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