Kennedys

Experts

3

Filter by: Practice area
James Shaw
Partner
Kennedys
Suzanne Prescott
Solicitor
Kennedys
Contributions by Kennedys

13

Advance payment bonds
Advance payment bonds
Practice notes

This Practice Note explains what an advance payment bond (sometimes referred to as an advance payment guarantee or advance stage payment) is and why they are used in the construction industry. It examines the key features of advance payment bonds (which are a form of advance payment security) and the other clauses which are typically seen, including duration of the bond and the maximum amount.

Amendments to ABI Model Form of Guarantee Bond
Amendments to ABI Model Form of Guarantee Bond
Practice notes

This Practice Note introduces the ABI Model Form of Guarantee Bond and explains why it was produced. It then examines the typical amendments which are made by lawyers.

On demand performance bonds—construction projects
On demand performance bonds—construction projects
Practice notes

This Practice Note examines the nature of on demand performance bonds in relation to construction projects. It identifies the key features which distinguish on-demand performance bonds from conditional performance bonds.

Performance bonds—construction projects
Performance bonds—construction projects
Practice notes

This Practice Note examines the nature of performance bonds and their use as financial security on construction projects. It looks at why building contracts commonly require contractors to provide a bond from a surety to the employer and where they fit into the documentation commonly required for a project. It covers the structure of a performance bond, the different types of bond and the differences between them. It also reviews key provisions which should be included for a performance bond to be effective, including the maximum amount of a bond, when it should expire and notice provisions.

Retention bonds
Retention bonds
Practice notes

This Practice Note examines the nature of retention bonds, what their purpose is and why they are used in the construction industry and the main clauses which are needed for a retention bond to be effective.

Advance payment bond—construction project
Advance payment bond—construction project
Precedents

This Precedent is a standard advance payment bond for use where an advance payment is required on a construction project. The bond is written on an on demand basis and provides for the surety to repay to the employer the amount of the advance payment which has not been properly applied to the works in the event of a contractor breach or an insolvency. The bond contains a maximum bond amount, an expiry date and an ability for it to be assigned to a funder or to the party to whom the building contract is assigned.

Conditional performance bond—construction project
Conditional performance bond—construction project
Precedents

This Precedent is a default or conditional performance bond to be given by a contractor to an employer as security on a construction project. Under the bond, the surety guarantees the contractor’s proper performance of its obligations under the building contract. The performance bond is drafted from a neutral position and provides for the surety to pay the employer in the event of such a breach by the contractor of its obligations or in the event of contractor insolvency.

On demand performance bond—construction project
On demand performance bond—construction project
Precedents

This Precedent is an on demand, or unconditional, performance bond to be provided as security by the contractor to the employer in the context of a construction project. The surety is obliged to make payment on receipt of a demand from the employer stating that the contractor is in breach of its obligations under the building contract or is insolvent. The surety is obliged to pay the amount claimed by the employer under the performance bond upon demand without first seeking substantiation of the amount claimed.

Retention bond—construction project
Retention bond—construction project
Precedents

This Precedent is a retention bond for use on a construction project under which the employer agrees not to withhold retention, and in return for which a surety agrees to guarantee the obligations of the contractor in the event of a default up to an amount which is equivalent to that which would have been withheld as retention under the building contract. It is drafted on an on demand basis.

Other Work
Advance payment bond—construction project—checklist
Advance payment bond—construction project—checklist

This Checklist sets out points to consider when drafting and agreeing an advance payment bond for a construction project.

Conditional bond—construction project—checklist
Conditional bond—construction project—checklist

This Checklist sets out points to consider when drafting and agreeing a conditional bond for a construction project.

On demand bond—construction project—checklist
On demand bond—construction project—checklist

This Checklist sets out points to consider when drafting and agreeing an on demand bond for a construction project.

Retention bond—construction project—checklist
Retention bond—construction project—checklist

This Checklist sets out points to consider when drafting and agreeing a retention bond in respect of a construction project.

Contributions by Kennedys Experts

1

Regulation of construction products
Regulation of construction products
Practice notes

This Practice Note provides guidance on the regulation of construction products by the EU’s Construction Products Retained Regulation (EU) No 305/2011 and the UK’s Construction Products Regulations 2013, SI 2013/1387. It also sets out relevant practical considerations, including tips for designers, employers, contractors and sub-contractors/suppliers.

If you expected to see yourself on this page, click here.