Monthly Archives: September 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 […]

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 […]

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 […]

Empty Vessels The problem of inaccurate drafting of contracts is a recurring theme in court cases. In the case of Wuhan Guoyu Logistics Group Co Ltd and Yangzhou Guoya Shipbuilding Co Ltd v Emporiki Bank of Greece SA [2012] EWCH 1715 (Comm) there is another instance of inaccuracy. The contract was for the construction of […]

THE PROCUREMENT OF INFORMATION TECHNOLOGY Introduction Brian Farrington Limited (BFL) have been involved in many IT procurements of varying value and with varying degrees of corporate risk attached to them. There are frequently challenges for IT and Procurement specialists. Not the least of these challenges is the purchase of technology that neither IT nor Procurement […]

Branson’s Pickle At the time of going to press it is reported that Virgin Trains have asked for a Judicial Review of the decision to award the InterCity West Coast Franchise to a competitor. The Department of Transport’s procurement actions will be scrutinised and no doubt their Invitation to Tender dated 20 January 2012 will […]

Apple has won its claim in the USA that Samsung have infringed its Patents. The jury believed the Apple case was more compelling than Samsung’s counter-claim. This could potentially cost Samsung dearly. The fine imposed is $1.05bn.  Apple originally sought compensation of $2.5bn. Samsung is likely to appeal against the decision and may ask for […]