If the Customer elects to arrange for undertaking the Contestable Works, the Customer must provide to SA Power Networks a Performance Bond, in the form of a Financial Guarantee.

The purpose of the Performance Bond is to cover any defects with the Contestable Works that arise during the 2 year liability period. In the event of a defect being identified, SA Power Networks will call on the bond and use the proceeds to reimburse us for the costs of remedying the Customer’s failure to comply with its obligations.

The Performance Bond can be established in several ways:

1. A financial guarantee, for a minimum of $10,000 or 10 percent (whichever is the greater) of the SA Power Networks estimate of the capital cost of the works to be vested;
2. A multiple project performance bond, in the form of a financial guarantee for the sum of $100,000. This is normally established by an electrical contractor undertaking multiple projects; and
3. A Rolling Bond in the form of a financial guarantee for the sum of $25,000 for contractors undertaking lower value projects. At the time the cumulative capital cost of works exceeds $250,000 a contractor will need to upgrade to a Multiple Project Performance Bond or the relevant SA Power Networks Project Manager will need to be in receipt of an individual bond for each project.

If a customer requires early Lands Title Clearance for allotments in a multi-land development, SA Power Networks may consider issuing clearance to the relevant Council prior to the Certificate of Completion for the electrical works being issued.

Clearance is only issued on the proviso that we have a suitable Financial Guarantee in place to cover the costs that SA Power Networks may incur to complete the works should the development be left unfinished.

Clearance bond values are calculated based on: 

1. The Applicant’s contribution for the Works, including civil works;  and
2. All other SA Power Networks costs associated with connections that are the responsibility of the Applicant.

As part of our requirements, all easements for our equipment must be shown on the numbered or filed plan that has been lodged with the Lands Title Office.

The value of the Clearance Bond will be specified in the Connection Offer provided by the SA Power Networks’ Project Manager.