Credeq and the rise of surety in construction: risk and capital insights for project teams
Reviewed by Joe Ashwell
First reported on Roads & Infrastructure (AU)
30 Second Briefing
Global performance guarantee provider Credeq is expanding the use of contract performance guarantees (surety) to support major construction and infrastructure projects in Australia and New Zealand as contractors face tighter balance sheets, larger package sizes and more complex risk allocation. Drawing on more than 35 years of specialist credit risk insurance, Credeq structures surety facilities alongside or instead of traditional bank guarantees, freeing working capital for plant, design teams and delivery partners. For engineers and project owners, this shifts focus from collateral constraints to verifying contractor capability, programme risk and performance triggers embedded in guarantee wordings.
Technical Brief
- Contract performance guarantees are structured to respond at defined milestones across pre-construction, delivery and defects periods.
- Underwriting focuses on project-specific risk allocation, including liquidated damages, delay risk and step-in rights.
- Surety capacity is aggregated across multiple projects, allowing large package sizes without ring‑fenced cash security.
- Facilities are designed to flex with project pipeline changes, enabling rapid issuance of additional guarantees when scope expands.
- Claims processes are aligned with contract performance triggers, aiming to minimise disputes over calling the guarantee.
Our Take
Roads & Infrastructure Magazine’s recent ‘Roads Review: Looking Forward’ item emphasised people and culture over mega-projects, and the rise of surety in Australia and New Zealand fits that shift by reallocating risk away from balance sheets and towards structured instruments that can protect smaller and mid-tier contractors.
For projects in Australia and New Zealand, using surety rather than traditional bank guarantees can free up working capital, which in our coverage has often been cited as a constraint on bidding capacity for multi-year road and bridge contracts, especially when multiple tenders are pursued in parallel.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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