Parent company guarantee PCG - Revision history

Designing Buildings at 08:36, 4 September 2020

2020-09-04T08:36:53Z

← Older revision		Revision as of 08:36, 4 September 2020
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	* Tender documentation.		* Tender documentation.

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

Designing Buildings at 07:21, 14 May 2020

2020-05-14T07:21:37Z

← Older revision		Revision as of 07:21, 14 May 2020
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	On-demand bonds are primary obligation bonds, where the bondsman pays an amount of money set out in the bond immediately on demand in writing, without any preconditions. Parent company guarantees are generally secondary obligation instruments where the guarantor is only liable where a breach of contract has occurred. See Bonds v guarantees for more information.		On-demand bonds are primary obligation bonds, where the bondsman pays an amount of money set out in the bond immediately on demand in writing, without any preconditions. Parent company guarantees are generally secondary obligation instruments where the guarantor is only liable where a breach of contract has occurred. See Bonds v guarantees for more information.

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

	* Advance payment bond.		* Advance payment bond.

Editor at 13:32, 19 January 2018

2018-01-19T13:32:27Z

← Older revision		Revision as of 13:32, 19 January 2018
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−	A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by ~~spinoff~~ from the parent company.	+	A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spin-off from the parent company.

	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.		A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.
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	This has the benefit of a continuing obligation to complete the project, and liability for latent defects for up to 12 years following completion, but there is some risk to the guarantee depending on the financial state of the parent company, for example if the contractor is unable to perform their obligations because the entire group has become insolvent.		This has the benefit of a continuing obligation to complete the project, and liability for latent defects for up to 12 years following completion, but there is some risk to the guarantee depending on the financial state of the parent company, for example if the contractor is unable to perform their obligations because the entire group has become insolvent.

−	There is no industry-standard form for parent company guarantees, so the parties should take care to ensure that the wording adopted properly reflects their specific requirements. Parent companies should ensure that they have the same rights, obligations and limitations under the guarantee as the contractor has under the main contract. The guarantee should also make clear the precise nature of the guarantee and whether there is a cap, the conditions under which a claim can be made, to what extend the main contract can be varied without affecting the guarantee, whether and under what circumstances it can be assigned to a third party and the requirement for the provision of notices.	+	There is no industry-standard form for parent company guarantees, so the parties should take care to ensure that the wording adopted properly reflects their specific requirements. Parent companies should ensure that they have the same rights, obligations and limitations under the guarantee as the contractor has under the main contract.
		+
		+	The guarantee should also make clear the precise nature of the guarantee and whether there is a cap, the conditions under which a claim can be made, to what extend the main contract can be varied without affecting the guarantee, whether and under what circumstances it can be assigned to a third party and the requirement for the provision of notices.

	Parent company guarantees may also be required by contractors from the parent companies of sub-contractors.		Parent company guarantees may also be required by contractors from the parent companies of sub-contractors.
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	* Contractor.		* Contractor.
	* Collateral warranties.		* Collateral warranties.
		+	* Comfort letter.
	* Contractors' all-risk insurance.		* Contractors' all-risk insurance.
	* Performance bond.		* Performance bond.

Editor at 15:36, 10 January 2018

2018-01-10T15:36:19Z

← Older revision		Revision as of 15:36, 10 January 2018
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	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.		A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.

−	Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or covering loss and expense incurred by the client).	+	Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and/or covering loss and expense incurred by the client).

	This has the benefit of a continuing obligation to complete the project, and liability for latent defects for up to 12 years following completion, but there is some risk to the guarantee depending on the financial state of the parent company, for example if the contractor is unable to perform their obligations because the entire group has become insolvent.		This has the benefit of a continuing obligation to complete the project, and liability for latent defects for up to 12 years following completion, but there is some risk to the guarantee depending on the financial state of the parent company, for example if the contractor is unable to perform their obligations because the entire group has become insolvent.
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	* Advance payment bond.		* Advance payment bond.
		+	* Bid bond.
	* Bonds.		* Bonds.
	* Bonds v guarantees.		* Bonds v guarantees.

Editor at 15:24, 6 January 2017

2017-01-06T15:24:46Z

← Older revision		Revision as of 15:24, 6 January 2017
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	* Professional Indemnity Insurance clause in conditions of engagement.		* Professional Indemnity Insurance clause in conditions of engagement.
	* Retention bond.		* Retention bond.
		+	* Surety.
	* Tender documentation.		* Tender documentation.

	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]

49.248.12.10 at 11:08, 8 June 2016

2016-06-08T11:08:03Z

← Older revision		Revision as of 11:08, 8 June 2016
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	A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.		A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.

−	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.~~bullshit~~	+	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.

	Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or covering loss and expense incurred by the client).		Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or covering loss and expense incurred by the client).

49.248.12.10 at 11:07, 8 June 2016

2016-06-08T11:07:22Z

← Older revision		Revision as of 11:07, 8 June 2016
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	A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.		A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.

−	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.	+	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.bullshit

	Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or covering loss and expense incurred by the client).		Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or covering loss and expense incurred by the client).

Editor at 09:44, 3 February 2016

2016-02-03T09:44:47Z

← Older revision		Revision as of 09:44, 3 February 2016
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−
	A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.		A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.

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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Advance payment bond.	+
−	*Bonds.	+	* Advance payment bond.
−	*Bonds v guarantees.	+	* Bonds.
−	*Contingency.	+	* Bonds v guarantees.
−	*Construction contract.	+	* Contingency.
−	*Contractor.	+	* Construction contract.
−	*Collateral warranties.	+	* Contractor.
−	*Contractors' all-risk insurance.	+	* Collateral warranties.
−	*Performance bond.	+	* Contractors' all-risk insurance.
−	*Procurement.	+	* Performance bond.
−	*Professional indemnity insurance.	+	* Procurement.
−	*Professional Indemnity Insurance clause in conditions of engagement	+	* Professional indemnity insurance.
−	*Tender documentation.	+	* Professional Indemnity Insurance clause in conditions of engagement.
		+	* Retention bond.
		+	* Tender documentation.

	[[Category:Contracts_/_payment]]		[[Category:Contracts_/_payment]]

Designing Buildings: moved Parent company guarantee to Parent company guarantee PCG

2015-04-08T09:37:21Z

moved Parent company guarantee to Parent company guarantee PCG

← Older revision

Revision as of 09:37, 8 April 2015

Designing Buildings at 09:35, 8 April 2015

2015-04-08T09:35:32Z

← Older revision		Revision as of 09:35, 8 April 2015
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−

	A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.		A parent company is a company that controls another ‘subsidiary’ company. Subsidiaries can be created by acquisition, or by spinoff from the parent company.

−	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically such a default might be caused by insolvency of the contractor.	+	A parent company guarantee (PCG) is a form of security that may be required by clients to protect them in the event of default on a contract by a contractor that is controlled by a parent company (or holding company). Typically, such a default might be caused by the insolvency of the contractor.
−		+
−	~~Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies~~.	+

−	The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or ~~cover~~ loss and expense incurred by the client).	+	Parent company guarantees can be particularly useful where a small contractor is part of a large, financially stable group of companies. The guarantee is given by the parent company to the client, and in the event that the contractor defaults on their obligations, the parent company is required to remedy the breach, meeting all the contractor’s obligations under the contract (and / or covering loss and expense incurred by the client).

	This has the benefit of a continuing obligation to complete the project, and liability for latent defects for up to 12 years following completion, but there is some risk to the guarantee depending on the financial state of the parent company, for example if the contractor is unable to perform their obligations because the entire group has become insolvent.		This has the benefit of a continuing obligation to complete the project, and liability for latent defects for up to 12 years following completion, but there is some risk to the guarantee depending on the financial state of the parent company, for example if the contractor is unable to perform their obligations because the entire group has become insolvent.
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	*Bonds v guarantees.		*Bonds v guarantees.
	*Contingency.		*Contingency.
−	*~~Contract~~.	+	*Construction contract.
	*Contractor.		*Contractor.
	*Collateral warranties.		*Collateral warranties.