CONTACT:

Willis Australia LimitedABN 90 000 321 237 AFSL No. 240600Level 4, 555 Bourke StreetMelbourne Vic 3000Tel: +61 3 8681 9800

Andrew NichollManaging Director Willis Construction – AustralasiaTel: +61 3 8681 9849Email: nicholla@willis.com

Graham MitchenerPractice Leader – Surety Bonds Tel: +61 3 8681 9871Email: mitchenerg@willis.com

Craig FreemantleAccount ManagerTel: +61 3 8681 9817Email: freemantlec@willis.com

Jim GoranitisAccount ManagerTel: +61 3 8681 9780Email: goranitisj@willis.com

Willis New Zealand LimitedCompany No. 111584 FSP37782Level 8, 21 Queen StreetAucklandTel: +64 9 358 3319 David HewittPractice Leader – Construction and Specialty RisksTel: +64 9 356 9361Email: hewittdj@willis.com

WILLISCONSTRUCTIONSURETY BONDS

ABOUT WILLISWillis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions utilising a global team represented in virtually every part of the world.

— Established in 1828— 17,000 Associates— 400 offices across 120 countries— Annual revenue of USD 3.45 billion— Annual premium throughput of USD 40,000 million

Additional information on Willis may be found at www.willis.com.au

WILLIS WORLDWIDE OFFICES

CORRESPONDENT AFFILIATE SUBSIDIARY

THE WILLIS CAUSE— We thoroughly understand our clients’ needs and their industries. — We develop client solutions with the best markets, prices and terms.— We relentlessly deliver quality client service.— We get claims paid quickly..…with integrity.

Willis Limited, Registered number: 181116 England and Wales.Registered address: 51 Lime Street, London, EC3M 7DQ.A Lloyd’s Broker. Authorised and regulated by the Financial Conduct Authority.

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INTRODUCTIONWillis is one of the largest Surety brokers in Australasia. Our practice, formed in 2004, has a team of three specialists with over 70 years of combined business experience across the banking, finance, underwriting and broking sectors.

We are a recognised name within the Construction and allied industries, with a diversified client base that includes:

— Commercial, Industrial and Residential Builders— Developers— Project Managers— Civil Contractors— Electrical Contractors— Concrete/Formwork Contractors— Earth Moving Contractors— Engineering Contractors (Mechanical, Civil, Electrical) and — Plumbing/Air-conditioning Contractors

Our knowledge, experience and scale benefit our clients. Our ability to engage local, national and global resources, to work the relationships to gain trust and flexibility, and to rigorously employ our technical knowledge to negotiate on our clients’ behalf, are examples of how we work with Surety providers to develop solutions in challenging situations.

The service does not stop with the initial advisory and placement functions – once a Surety facility is established we provide ongoing first class service, assisting with the Surety provider’s annual review requirements, facility increases, issuance of bonds, and as necessary, dialogue with Principals around bond wording or format acceptability.

A complete service, at your disposal.

Graham MitchenerPractice Leader – Surety Willis Construction, Australasia

WILLIS GLOBALLYWillis is a recognised leader in the Surety brokering business. Worldwide, Willis has placed a significant volume of business at consistently profitable loss ratios with the major insurers for many years. Willis currently ranks No. 1 in volume and profit with many of the industry’s top insurance carriers.

Key markets include Travelers, Zurich, Liberty, Chubb and CNA. Willis place in excess of USD 250 million in premium annually with these markets. This volume of business benefits our clients by giving us the scale to dedicate technical Surety expertise at the local office, national and international level.

Our Surety professionals are well respected amongst their peers with strong relationships at management level with insurers. We also have a wealth of experience across a number of industries, including construction, mining, power and gas.

WHAT ARE SURETY BONDS?Surety Bonds are a valuable alternative to bank guarantees and cash retentions, as well as an effective way of increasing a contractor’s capital base. Unlike bank guarantees, which are supported by collateral and tie up valuable working capital or other assets, Surety providers evaluate the performance risk of the contractor and its ability to complete contracts. Surety Bonds can be unconditional, irrevocable, payable on demand or conditional, aligned to conditions precedent being met prior to a payment under the bond.

BONDS AND CONTRACT TYPESThe following are typical bond types issued under contract:

– Bid/tender bonds– Performance bonds– Maintenance bonds– Retention bonds– Off-site bonds– Advance payment bonds– Mining rehabilitation/reclamation bonds

Surety Bonds can be used for a broad range of contract types including residential, commercial, industrial, civil, engineering, mining and infrastructure. Bonds are an accepted form of contract security for most principals, including local, state and federal government departments.

THE ADVANTAGES OF BONDSSome advantages of Surety Bonds when compared to traditional bank guarantees and cash retentions include:

– No tangible security or collateral required, thereby freeing up assets for other purposes, i.e. growth of the business or procurement of additional working capital

– Improved liquidity– Bonds enhance working capital by

eliminating the need to use established credit lines for contingent liability purposes

– You only pay for the bond limits used, not the whole facility

– An advantage for contractors is that principals may regard your bid more favourably since your financial status has been assessed by an independent outside third party (a major Surety provider) who is willing to provide the principal a written unconditional guarantee of your ability to perform the contract

– An advantage for principals is that the selection process is easier since contractors with surety bonds are less likely to become insolvent than those contractors without bonds

QUALIFICATION CRITERIACandidates will generally need to demonstrate the following to be considered eligible for an annual Surety Bond facility:

– A minimum turnover of $30 million– A solid trading record – at least three years

of continuous profitability– Strong financial resources– An experienced and stable management team– Technical capability to undertake and

complete contracts

FINANCIAL STRENGTHThe financial strength of the Surety Providers with which Willis transacts business is typically S&P rated A or better.

It is an important element in winning broad acceptance by principals for the surety bond option, by removing any concerns or doubts as to the ability of these providers to support their product.

Accordingly, Willis closely monitor the Surety Providers, seeking regular financial updates directly from the Providers themselves, and from the regulatory and industry authorities and Surety associations (where they exist), to ensure their financial security remains at the required level.

THE WILLIS ADVANTAGEAs a leading Surety broker in Australasia, Willis offers the following advantages for our clients:

– Pre-assessment of your performance risk prior to presentation to Surety providers. This will include an assessment of your history, management controls, technical ability to undertake contracts, exposure to projects on hand, liquidity and financial resources to undertake additional work

– Professional marketing of your risk to Surety providers will ensure competitive premiums

– Guaranteed 48 hour turnaround for issuance of individual bond certificates once a facility is established

– Assistance securing acceptance of bonds/bond wording in contract negotiations

– Global access to all financial surety markets– Procurement of unconditional guarantees– Maintenance and assistance in retrieval of

expired bonds so as to keep facility limits at required levels

CLIENT TESTIMONIALWillis continually demonstrate strong Surety market knowledge and execution capabilities – they remain a valuable business partner for Devine.

Paul CochraneChief Financial Officer – Devine Limited