Monthly Archives: September 2016

PROJECT DISPUTE – PERFORMANCE AND PERFORMANCE GUARANTEE We are always seeking to inform our readers of contractual ‘incidents’ from which there is extensive learning opportunities. There has been a long running saga between Todaysure Matthews Ltd & Anor v Marketing Ways Services Ltd. The latest reference is [2016] EWHC 147 in the Commercial Court. The […]

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 […]

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 […]