Special Features of Construction Companies' Financial Statements

Securities for Contract Performance

When concluding a construction contract, the client often wants to make sure that the construction company complies with its contractual obligations. For this reason, many construction contracts include a performance guarantee which usually amounts to ten percent of the contract value.

Beside the other types of securities lined out here, large construction groups in this case often make use of guarantees issued by the mother company - in our case HOCHTIEF AG - or by subsidiaries with a particularly favourable credit standing.