| Commentary

38 General

| Commentary

5: SECURITY FOR CONTRACTOR’S PERFORMANCE

38 General

Construction contracts frequently require the contractor to provide security for the due performance of his obligations, in the form of a contract of suretyship with either a parent or associated company or a financial institution1. Such contracts may also be used as security against advance payments by the employer, or, increasingly commonly, in place of the contractor’s retention2. Any such requirement is regarded as important: a contractor’s failure to obtain a required contract of suretyship in the form of a bond has been held to be a repudiatory breach of contract3, while an architect

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