Performance guarantees in construction contracts
Performance guarantees in construction contracts
Podcast
Performance guarantees in construction contracts
Podcast
Guarantees are common in construction and engineering contracts. In particular, the employer may require that the contractor provide a performance guarantee. This type of guarantee is designed to secure the contractor's performance of its obligations under the contract. The reason for this mechanism is that if the contractor fails to perform, the employer is likely to suffer a loss. Performance guarantees are a means by which the employer is afforded protection against non-performance by the contractor and for this reason, they are often referred to as "performance security".
Listen to Construction & Engineering Sector Head and Director, Clive Rumsey and Candidate Attorney, Iva Babayi as they discuss performance guarantees in construction contracts.
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