Amendments to ABI Model Form of Guarantee Bond
Produced in partnership with Kennedys

The following Construction practice note produced in partnership with Kennedys provides comprehensive and up to date legal information covering:

  • Amendments to ABI Model Form of Guarantee Bond
  • Introduction
  • Typical issues addressed in any amendment of the ABI Model Form
  • Clause 1
  • Demand
  • Clause 2/Clause 4
  • Clause 3
  • Clause 6
  • Clause 8
  • Expiry

Amendments to ABI Model Form of Guarantee Bond


The ABI Model Form of Guarantee Bond was first published in 1995 and was updated (in 2002) to incorporate reference to the Contracts (Rights of Third Parties) Act 1999. A copy is available here:

ABI Model Form of Guarantee Bond

The ABI explanatory guide states the ABI Model Form was published:

'following a lengthy period of consultation with government and local authority advisors, commercial users, construction and engineering industry bodies, major construction companies and insurers, to respond to the criticisms of archaic bond wordings made by the House of Lords in the case of Trafalgar House…'

The explanatory guide also provides more detail of the aims of the Model Form, together with commentary on the text.

In short, the aim was to provide a short form conditional bond wording, in clear, modern language that is intended to strike a fair balance between safeguarding the respective interests of the employer and the contractor. The hope and intention was that the ABI Model Form might become an industry standard model form of conditional performance bond. This has been partially achieved as it has been commonly adopted as a starting point, but is often subject to bespoke amendment, reflecting particular requirements of the parties.

This Practice Note identifies areas which are commonly made the subject of amendment. For more background on performance bonds, see

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