- Performance bond triggered by contractor insolvency (Ziggurat v HCC)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Ability to call on the bond
- Amount payable
- Case details
Construction analysis: The court made declarations concerning the liability of the defendant surety to the claimant employer under the terms of a performance bond based on the ABI Model Form. The court held that the contractor’s insolvency was enough to trigger the bond (due to a bespoke amendment), and that in any event the contractor had been in breach of the construction contract (which incorporated the JCT conditions) by failing to pay the amount due to the employer following insolvency as ascertained under the contract.
Sign in or take a trial to read the full analysis.
To continue reading this news article, as well as thousands of others like it, sign in to LexisPSL or register for a free trial