Wed 15 Jun 2016

Contractor Financial Security – Ensure Entitlements are Identified in the Contract

It is universal that contracts for significant construction projects require the Contractor to provide performance security to the Principal. The Principal’s entitlement to call on that security, however, is often a point of dispute.

The terms of the construction contract are critical in determining a party’s right to call on security provided to secure performance of that contract.

Should a party wish to limit the other party’s rights to make a call on security in particular circumstances, it is recommended that these limitations be expressly written into the contract.

More information from Page Seager can be found here

Page Seager can assist your business with all aspects of contractual law.