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Performance bond triggered by contractor insolvency (Ziggurat v HCC)

Performance bond triggered by contractor insolvency (Ziggurat v HCC)
Published on: 21 December 2017
Published by: LexisPSL
  • 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

Article summary

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. or take a trial to read the full analysis.

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