SCOPE, DURATION, AND HOW IT WORKS

The completion guarantee guarantee is limited to the full value of the construction contract. This amount, which includes the costs in the construction contract, represents the maximum amount the guarantor will be obligated to pay under the terms of the contract.

 

The guarantee is issued for the entire construction period of the project. The fee is calculated on a project-by-project basis, not annually. A single fee is charged for project durations up to 36 months. An additional premium is charged for projects with a total project duration exceeding 36 months. Payment terms are determined by agreement between the parties. Payments are made to the issuing institution.

 

The guarantee cost is determined by a comprehensive risk assessment and by evaluating the strength and liquidity of the guarantee provided relative to the total project size.

 

Completion Guarantee Guarantee:

Beneficiary: Home buyer, beneficiary, landowner, housing finance institutions, funds, and investors

Price: Total current construction cost

Duration: Construction completion period, maximum 36 months

ADVANTAGES

• The guarantee request of each party with a right or interest in the project is met simultaneously and to the same extent. This simplifies the updating and tracking of the guarantee value.

• The completion guarantee can be offered to public authorities requiring guarantees. For the public sector, a single guarantee covering all parties is also easier to track.

• Securing the entire project at a fixed price until completion, without affecting bank limits, provides significant benefits to the housing company. It eliminates price and scope differences that may arise between separate guarantees that must be provided to each party. Furthermore, a strong guarantee attracts investors to the project and increases sales speed.

• It can be used as collateral by financial institutions and banks to provide "address-based loans" to beneficiaries who are unable to pay their contribution to urban transformation.

• By securing a completion guarantee for projects they provide housing loans to, banks can expand their credit limits by relieving themselves of their obligations arising from the underlying loan.

• Because the completion guarantee transaction is not a loan transaction, it does not appear as a loan on the housing company's balance sheet and does not burden its balance sheet.​​​​