Monthly Archives: September 2012

Outsourcing

Monday, September 10th, 2012

The UK is probably 8 – 12 years behind USA experience with outsourced contracts. It has been evident for some time that in-sourcing was taking place at an increasing pace, particularly with IT contracts. Unsurprisingly, the public sector has had mixed experiences with outsourced contracts for a wide variety of services. The UNISON bargaining web-site […]

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Bid Bonds

Friday, September 7th, 2012

BID (TENDER) BONDS This is a debt secured by a bidder for a construction project or other large ‘project’ on a tender based selection process for providing a guarantee to the potential client that the bidder will take on the contract if selected. If they decline to accept the contract the bond is forfeited, unless […]

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Parent Company Guarantees

Thursday, September 6th, 2012

Parent Company Guarantees A parent company guarantee (PCG) is a promise to answer a liability being a debt or default of another ….. in construction terms the parent company will be answering the debt or default of a contractor, noting that PCG’s are used in a variety of procurement situations, including outsourcing contracts. The essential […]

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Conditional Bond

Wednesday, September 5th, 2012

Conditional bond A conditional bond is common within the UK construction industry. Such a bond is usually issued by an insurance company, and payment is usually conditional upon the employer who makes the call providing the amount of loss which he has suffered. In practice, therefore, a conditional bond may require litigation before any payment […]

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On-Demand Bond

Tuesday, September 4th, 2012

On-Demand Bond An on-demand bond is also referred to as an Unconditional Bond. Contractor’s performance bonds come in two basic varieties to meet the needs of different project owners. An on-demand bond results in an automatic cash payment if the contractor fails to complete the project. With a conditional performance bond the burden of proof […]

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Interserve and sustainable procurement

Monday, September 3rd, 2012

Interserve achieves gold in world’s first standard for sustainable procurement. Interserve, the international support services and construction group, has been successfully assessed by Brian Farrington Ltd, using proprietary metrics of evaluation against BS 8903:2010, the world’s first standard for sustainable procurement. The Support Services procurement team was awarded the BFL Gold Standard with an overall […]

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Bonds

Monday, September 3rd, 2012

The complex world of Bonds – a business briefing. The word ‘Bond’ is regularly used in procurement, often with regard to construction projects or capital equipment procurement. In order to apply, and include Bonds effectively in contracts, requires specialist knowledge, particularly, but not exclusively, by procurement. We are dedicating this whole week of Risk briefing […]

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