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COMPLETION GUARANTEE SCOPE

 

A completion guarantee is a contract that is drawn up for the entire construction period based on the total current price of the project and that commits to complete and deliver the project on time and in full. With this contract that includes a completion commitment, the guarantors undertake to complete the project on time without delay by providing interim financing if necessary.

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With the coordination of Sufibond, between the agreed strong guarantors and the project owner:

1. Completion Guarantee Agreement - CGA,

2. Completion Guarantee Letter - CGL,

 

The Completion Guarantee Letter:

• Information such as the name of the project company and the project, location, current cost, work plan, delivery time,

• Beneficiaries such as housing buyers, landowners, right owners,

• Relevant public authorities requesting guarantee,

• Companies that provide resources to the project such as housing finance companies, banks, funds and investors.

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ADVANTAGES

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• The guarantee request of each party with a right or interest in the project will be met at the same time and within the same scope.

• Thus, the differences in price, duration and scope between the guarantees requested separately by the parties, and the difficulties of updating and following up will be prevented.​​

• CGL, which covers the entire project and is easy to update and follow, will increase the sales speed of the project.

• It can be used as a guarantee in financial institutions and banks for the crediting of beneficiaries who are unable to pay the contribution fee in the form of “address-based credit”.

• When banks have a completion guarantee for the entirety of the real estate projects they provide housing loans or project loans, they will transfer their obligations arising from the connected credit in unfinished projects to the guarantee company and will be able to expand their credit limits.

• The completion guarantee agreement is not a credit agreement, it is a guarantee agreement in the full sense. It does not appear as a credit on the project owner's balance sheet and does not weigh down the balance sheet. With this agreement, strong financial resources guarantee that the project will be completed within the committed time.

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WORKING METHOD, PROCESS ORDER
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1. CUSTOMER AND PROJECT APPLICATION

- The customer sends company and project information to Sufibond.

- There is no pre-compliance requirement.

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2. PRELIMINARY ASSESSMENT AND RATING

- A preliminary examination is made by the Sufibond team about the customer and the project.

- If found appropriate, the customer is informed that the guarantee request will be forwarded to the guarantors.

3. FORWARDING THE APPLICATION TO THE GUARANTORS

- Detailed information about the project for which the guarantee is requested and a signed application are received from the customer.

- As a result of the guarantors evaluating the customer and the project and making a credit rating, the customer is informed about whether a guarantee will be given to the project, and if so, the conditions and price.

 

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4. COMPLETION GUARANTEE AGREEMENT (CGA) ISSUANCE

- If the customer accepts the conditions and price, a “Completion Guarantee Agreement” is signed between the customer and the guarantors under the coordination of Sufibond.

- CGA is arranged based on the total market value of the project and its value can be updated.

5. PAYMENT OF FEES

- The customer pays the guarantee fee determined according to the credit rating to Sufibond.

- The guarantee fee is calculated on a project basis, not annually, and a single fee is charged for the duration of the project. Payment terms are determined by agreement of the parties.

 

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6. ISSUANCE OF COMPLETION GUARANTEE LETTER (CGL)

- After the contract is made and the fees are received, a "Completion Guarantee Letter - CGL" is issued to be presented to third parties with rights and interests, depending on the signed CGA.

- The letter is sent to the rights and interests registered in CGL.​​​​​​​