Contract Guarantees: Win the Tender. Bond the Contract. Keep Your Cash Working.
Bid Bonds, Performance Bonds, Advance Payment Guarantees and Retention Bonds — issued fast, secured simply, backed by DCL from application to closure.
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What is Contract Guarantees?
This is a suite of guarantee instruments that secure your contractual obligations to an employer or procuring entity — without tying up your own working capital in cash security. DCL handles everything end-to-end: your application, structuring, issuance, and support through to project close.
With this product, you benefit from:
- No need for full cash collateral — only a partial security margin
- Fast turnaround so you never miss a bid or contract deadline
- A single relationship with DCL from application to guarantee closure
- One point of contact for application, issuance and renewal
Our Guarantee Instruments
Bid BondsBid Bonds
Secures your bid so procuring entities know you’re a serious, capable bidder. Issued within 12–24 hours (same-day where documents are complete), valid for the tender period.
- Get shortlisted with confidence
- Fast, tender-deadline-friendly issuance
- No cash margin required for bonds under KES 20 million
Performance BondsPerformance Bonds
Guarantees you’ll deliver on the contract once awarded, replacing your Bid Bond after a successful award. Valid for up to 24 months.
- Assures employers of full contract delivery
- Frees up capital instead of tying it in cash guarantees
- Structured alongside our team’s contract performance monitoring
Advance Payment GuaranteesAdvance Payment Guarantees
Secures any advance payment released to you by the employer, so you can mobilise for the project immediately.
- Unlocks upfront project mobilisation funds
- Reduces automatically as the advance is recovered
- Structured against your contract’s advance payment terms
Retention BondsRetention Bonds
Releases the retention money employers typically hold back until the defects liability period ends — so that cash isn’t stuck for months after project completion.
- Frees up retained funds immediately on completion
- Valid through the contractual warranty/defects liability period
- Simple conversion process at project handover
A simple 5-Step process to guarantee your business continuity.
- 1
Apply
Tell us about your tender or contract and the guarantee you need.
- 2
Verification
We assess your business, the underlying contract, and confirm your security margin and insurance cover.
- 3
Structuring
DCL prices the guarantee transparently and issues a formal quote.
- 4
Issuance
Once you accept, DCL processes and delivers your guarantee instrument to you.
- 5
Monitoring & Closure
We track your contract to completion and release your security margin once the guarantee expires or is discharged.
Frequently asked questions about our contract guarantees product
Who is this for?
- SME contractors in construction, roads, water, energy, ICT and housing
- Suppliers of goods and services to government and corporates
- Professional service firms and consultants needing bid/performance bonds
- Growing businesses with strong contracts but limited access to traditional guarantee facilities
What's the difference between a Bid Bond and a Performance Bond?
A Bid Bond secures your tender submission and shows you’re a credible bidder. Once you win and sign the contract, it’s replaced by a Performance Bond, which guarantees you’ll actually deliver on the awarded contract.
Do I need to put up 100% cash security?
No. Most guarantees require only a partial cash/security margin, with the remaining exposure covered through trade credit insurance — so your working capital stays free for the actual project.
How fast can I get a guarantee issued?
Bid Bonds can be issued same-day where documents are complete. Performance Bonds, Advance Payment Guarantees and Retention Bonds typically take 48–96 hours depending on the complexity of due diligence required.
What size of contracts do you support?
Guarantees are available for contracts with a ticket size of between Kes 5,000,000 and KES 20,000,000.
What do I need to apply?
Your tender documents or signed contract, standard KYC documents for your business and directors, and a Credit Reference Bureau report. Our team will guide you through the full checklist.
Who do I deal with throughout the process?
DCL. From your first application to the day your guarantee is discharged and your security margin is released, DCL is your single point of contact and relationship owner.
