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Article
Bonds in Action - on demand, preserving your rights and calling up

Date:
25 Apr 2012
 

Bonds are a common feature in construction and engineering projects. Their purpose is to provide one party with security in the event the other party defaults. Perhaps not surprisingly, given the current economic climate, there have been a number of cases coming out of the courts on the topic of bonds. 

Fiona Rossetter, a Senior Associate in our Construction & Engineering team, looks at these cases and their impact on:

  • how the courts differentiate between on demand and conditional guarantees
  • what you need to do to preserve rights under bonds which are reaching their stated expiry date
  • the practicalities to consider when calling up a bond
  • the bases upon which a party can seek to reclaim monies paid out under a bond if the underlying reason for the call is disputed

This article first appeared in Construction Law in April 2012.

To read the article in full, click on the pdf below.

Our Contact:
Fiona Rossetter   email
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