Bonds in construction contracts - Revision history

Designing Buildings at 06:27, 16 August 2024

2024-08-16T06:27:31Z

← Older revision		Revision as of 06:27, 16 August 2024
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	Adjudication bonds are conditional bonds that have emerged on PFI/PPP projects and are payable on an adjudicator's decision. Adjudication bonds are most suitable when the adjudicator’s decision is final and binding. If this is not the case (i.e. the adjudicator’s decision is an interim one), complex procedures are necessary to balance payments if subsequent dispute resolution procedures reach different decisions.		Adjudication bonds are conditional bonds that have emerged on PFI/PPP projects and are payable on an adjudicator's decision. Adjudication bonds are most suitable when the adjudicator’s decision is final and binding. If this is not the case (i.e. the adjudicator’s decision is an interim one), complex procedures are necessary to balance payments if subsequent dispute resolution procedures reach different decisions.

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

−	* Adjudication.
	* Advance payment bond.		* Advance payment bond.
	* Bid bond.		* Bid bond.
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	* Campaign for cash retentions reform.		* Campaign for cash retentions reform.
	* Comfort letter.		* Comfort letter.
−	* ~~Defects liability period.~~	+	* Contractor bonding.
−	* Duty.	+
	* Escrow.		* Escrow.
	* Parent company guarantee.		* Parent company guarantee.
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	* Surety.		* Surety.
	* Warranty.		* Warranty.
−	* What is a default?
	* [[Wuhan_Guoyu_Logistics_Group_Co_Ltd_%26_Anr_v_Emporiki_Bank_of_Greece_SA\|Wuhan Guoyu Logistics Group Co Ltd & Anr v Emporiki Bank of Greece SA (2013)]].		* [[Wuhan_Guoyu_Logistics_Group_Co_Ltd_%26_Anr_v_Emporiki_Bank_of_Greece_SA\|Wuhan Guoyu Logistics Group Co Ltd & Anr v Emporiki Bank of Greece SA (2013)]].
	* Zero-coupon bond.		* Zero-coupon bond.

	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 07:57, 28 August 2020

2020-08-28T07:57:05Z

← Older revision		Revision as of 07:57, 28 August 2020
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	* Zero-coupon bond.		* Zero-coupon bond.

−	[[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 07:56, 28 August 2020

2020-08-28T07:56:42Z

← Older revision		Revision as of 07:56, 28 August 2020
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−	~~This page refers to bonds as a legal term. For the definition as it applies to brickwork, see [[Brick\|Brick]].~~
−
	[[File:Bonds.png\|link=File:Bonds.png]]		[[File:Bonds.png\|link=File:Bonds.png]]

Editor at 09:31, 20 May 2020

2020-05-20T09:31:51Z

← Older revision		Revision as of 09:31, 20 May 2020
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		+	This page refers to bonds as a legal term. For the definition as it applies to brickwork, see [[Brick\|Brick]].
		+
	[[File:Bonds.png\|link=File:Bonds.png]]		[[File:Bonds.png\|link=File:Bonds.png]]

Designing Buildings at 16:31, 10 February 2020

2020-02-10T16:31:18Z

← Older revision		Revision as of 16:31, 10 February 2020
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	* Parent company guarantee.		* Parent company guarantee.
	* Performance bond.		* Performance bond.
		+	* Professional consultant's certificate.
	* Retention.		* Retention.
	* Retention bond.		* Retention bond.

Designing Buildings at 07:35, 7 August 2019

2019-08-07T07:35:21Z

← Older revision		Revision as of 07:35, 7 August 2019
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	* Bid bond.		* Bid bond.
	* Bonds and guarantees.		* Bonds and guarantees.
		+	* Bondsman.
	* Campaign for cash retentions reform.		* Campaign for cash retentions reform.
	* Comfort letter.		* Comfort letter.

Editor at 11:16, 19 July 2019

2019-07-19T11:16:32Z

← Older revision		Revision as of 11:16, 19 July 2019
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	= Off-site materials bond =		= Off-site materials bond =

−	It can sometimes be appropriate for the client to pay for items even though they remain ‘off-site’~~, for~~ example, where a contractor has made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme.	+	It can sometimes be appropriate for the client to pay for items even though they remain ‘off-site’. For example, where a contractor has made a large payment for plant or materials that have yet to be delivered to site, or if the client wishes to ‘reserve’ key items in order to protect the programme.

	This is similar to the situation where an advanced payment is made in that a bond secures the payment against default by the contractor and is likely to be an on-demand bond. The bond might be up to the value of the off-site items, with the value of the bond reducing as deliveries to site are made.		This is similar to the situation where an advanced payment is made in that a bond secures the payment against default by the contractor and is likely to be an on-demand bond. The bond might be up to the value of the off-site items, with the value of the bond reducing as deliveries to site are made.

Editor at 11:48, 15 March 2019

2019-03-15T11:48:01Z

← Older revision		Revision as of 11:48, 15 March 2019
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	* Bid bond.		* Bid bond.
	* Bonds and guarantees.		* Bonds and guarantees.
		+	* Campaign for cash retentions reform.
	* Comfort letter.		* Comfort letter.
	* Defects liability period.		* Defects liability period.

Editor at 11:59, 13 March 2019

2019-03-13T11:59:47Z

← Older revision		Revision as of 11:59, 13 March 2019
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	= Advance payment bond =		= Advance payment bond =

−	If the client agrees to make an advance payment to the contractor, (for example where the contractor incurs significant start up and procurement costs before construction begins), a bond may be required to secure the payment against default by the contractor. This will normally be an on-demand bond.	+	If the client agrees to make an advance payment to the contractor, (for example where the contractor incurs significant start-up and procurement costs before construction begins), a bond may be required to secure the payment against default by the contractor. This will normally be an on-demand bond.

	For more information, see Advance payment bond.		For more information, see Advance payment bond.
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	= Bid bond (or tender bond) =		= Bid bond (or tender bond) =

−	Bid bonds are rare in the UK, but can be a requirement of an international tender process. They are usually on-demand bonds submitted with a tender to secure the ~~tender~~'s commitment to commence the contract. The bond is partially or fully forfeited if the winning ~~tender~~ fails to execute the contract or meet other specified conditions.	+	Bid bonds are rare in the UK, but can be a requirement of an international tender process. They are usually on-demand bonds submitted with a tender to secure the tenderer's commitment to commence the contract. The bond is partially or fully forfeited if the winning tenderer fails to execute the contract or meet other specified conditions.

	Bid bonds can be open to abuse by the client and may prevent smaller companies from tendering.		Bid bonds can be open to abuse by the client and may prevent smaller companies from tendering.
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	= Adjudication bond =		= Adjudication bond =

−	Adjudication is a contractual or statutory procedure for swift dispute resolution. Adjudication is provided by a third party adjudicator selected by the parties to the dispute.	+	Adjudication is a contractual or statutory procedure for swift dispute resolution. Adjudication is provided by a third-party adjudicator selected by the parties to the dispute.

	Adjudication bonds are conditional bonds that have emerged on PFI/PPP projects and are payable on an adjudicator's decision. Adjudication bonds are most suitable when the adjudicator’s decision is final and binding. If this is not the case (i.e. the adjudicator’s decision is an interim one), complex procedures are necessary to balance payments if subsequent dispute resolution procedures reach different decisions.		Adjudication bonds are conditional bonds that have emerged on PFI/PPP projects and are payable on an adjudicator's decision. Adjudication bonds are most suitable when the adjudicator’s decision is final and binding. If this is not the case (i.e. the adjudicator’s decision is an interim one), complex procedures are necessary to balance payments if subsequent dispute resolution procedures reach different decisions.

Editor at 15:51, 1 October 2018

2018-10-01T15:51:10Z

← Older revision		Revision as of 15:51, 1 October 2018
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	Adjudication bonds are conditional bonds that have emerged on PFI/PPP projects and are payable on an adjudicator's decision. Adjudication bonds are most suitable when the adjudicator’s decision is final and binding. If this is not the case (i.e. the adjudicator’s decision is an interim one), complex procedures are necessary to balance payments if subsequent dispute resolution procedures reach different decisions.		Adjudication bonds are conditional bonds that have emerged on PFI/PPP projects and are payable on an adjudicator's decision. Adjudication bonds are most suitable when the adjudicator’s decision is final and binding. If this is not the case (i.e. the adjudicator’s decision is an interim one), complex procedures are necessary to balance payments if subsequent dispute resolution procedures reach different decisions.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Adjudication.		* Adjudication.
	* Advance payment bond.		* Advance payment bond.
	* Bid bond.		* Bid bond.
−	* Bonds and guarantees ~~(Aviva Insurance Limited v Hackney Empire Limited 2012)~~.	+	* Bonds and guarantees.
	* Comfort letter.		* Comfort letter.
	* Defects liability period.		* Defects liability period.
		+	* Duty.
	* Escrow.		* Escrow.
	* Parent company guarantee.		* Parent company guarantee.