Guarantees And Bonds
There are various legal factors that have to be considered when it comes to Guarantees and Bonds in the construction industry. It is therefore advisable to make sure you have an experienced law firm on your side to ensure you are covered in every area. At Blackstone Solicitors, we are able to advise many different types of client, no matter the complexity of the circumstances surrounding bonds and guarantees.
For more information about how our team of construction solicitors can help you, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
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How we can help
The purpose of a performance bond or guarantee is to ensure a third party delivers goods or performs services in accordance with the terms of an underlying contract. These bonds and guarantees are common forms of security in the construction industry.
We are here to help with the drafting of bonds and guarantees in construction contracts and advise upon their implications. Be it a single local plot or a site on a much larger scale, we will work with you to make sure everything goes to plan.
Friendly yet direct, our team is passionate about every case we take on, and we believe the entire process requires constant communication. We will therefore guide you through the technicalities involved, offering expert advice from start to finish.
Why legal help is important
There is a very defined difference between a guarantee and a bond. If you want to be guaranteed payment of a sum of money on the happening of a certain event, even if the parties are in dispute at the time, then you need a bond. The bondsman has to pay upon demand irrespective of the underlying merits of the claim. Documents will have to be provided but payment has to be made. The debtor cannot say that he doesn’t owe the money. Provided the documents are presented to the bondsman, you get your money. These type of bonds are often used for advance payments for expensive plant, machinery or pre-fabricated items, especially when large sums of money are being sent to uncertain jurisdictions where pursuing the debtor would be problematic.
Unlike a bond, a guarantee only guarantees due performance of the contract. In construction, most performance bonds are actually guarantees. The bondsman will only pay the damages suffered by the employer due to the contractor’s non-performance of the construction contract. The employer has to prove that there has been non-performance and prove the damages are due before the bondsman will pay.
There are many technicalities related to a guarantee which could result in the issuer of the guarantee avoiding his obligations. Further, there are many standard bonds available but care must be exercised when using one as certain defences available to the bondsman are excluded.
Our team prides itself on being able to meet every need of each of our clients. We are willing to go the extra mile when other firms are not, ensuring our clients are given the very best opportunity of getting the outcome they are after. Get in touch to see how our specialist team can help and advise you with bonds and guarantees.
Speaking to one of our solicitors is easy, simply call us on 0345 901 0445 or allow us to get in touch with you by filling in our online enquiry form. Our services are available to clients throughout the UK, including Manchester, London, Cheshire and Chester, as well as to those living abroad.