An Introduction to Bonds & Guarantees in the Construction Sector - Live at Your Desk
For a client procuring a significant construction project, it is essential to ensure that suitable performance security is in place to safeguard against the risk of the building contractor failing to perform or becoming insolvent. It can be the difference between the client receiving compensation for its losses and ending up significantly out of pocket.
This virtual classroom seminar will provide an introduction to performance security (specifically bonds and guarantees) in the construction sector. It will compare and contrast the different forms of bonds and guarantees, their uses and limitations and points to note in respect of their terms, market standard positions and any recent case law of interest.
It is suitable for construction lawyers at an early stage in their careers, real estate lawyers with an interest in development work and any professional working in the construction industry who may come across bonds and guarantees.
What You Will Learn
This live and interactive session will cover the following:
- Purpose of performance security
- Types of performance security:
- Performance bonds
- Advance payment bonds
- Parent company guarantees
- Retention bonds
- Key issues relating to performance security:
- ‘On demand’ or merely a secondary obligation?
- Impact of amendments to the building contract and the insolvency of the building contractor
- Priority of claims against the contractor
- Limitations of liability, expiry and assignment
- Compliance with notice requirements
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.